BANK of Tanzania Governer,Prof Benno Ndulu
Bank of Tanzania governor Prof Benno Ndulu,
declared yesterday that the country’s financial position is stable with
the sector’s capital adequacy standing at 17 percent.
The figure is above the average international standard rate of 12 percent.
“…our banking sector is stable….capital adequacy is
good…the overall capital is above the international requirements so we
have a good financial back up should there be need…,” he reassured
Tanzanians.
The banking system’s liquidity is also well above the international criteria which is 20 percent, he asserted.
At 40 percent, Tanzania’s position is twice that amount, he added.
In fact the banking system is so sound that the
stress test conducted to establish the capacity of banks to survive in
case of national financial breakdown last year, indicated that banks in
the country would stay afloat without government bailouts.
Prof Ndulu said that the Tanzania Financial
Stability Forum that was launched recently will improve the exchange of
information, smoothen coordination and improve the response strategies
in case of a financial crisis.
“…it’s almost 12 years since a bank collapsed…in 2000 and 1999 was the last time a bank folded…,” he revealed.
Commending the governor, Social Security Regulatory
Authority (SSRA) director general Irene Isaka asserted that even the
social security funds in the country are financially stable.
She explained that following last year’s financial
report which indicates that the funds reached 5.3trn/- and subsequent
investment went up to 4.2trn/- this is reassurance bit of information to
persons due to retire.
When launching the forum, the Deputy Minister for
Finance, Janet Mbene,assured financial regulators in the country of the
forum’s commitment to work with them in developing a sound and stable
financial system.
She took examples from the 1997 Asian crisis and
the recent global financial crisis, noting that the costs were enormous
in terms of output loss and bailout costs.
To avoid such crises, she advised that all stakeholders cooperate to secure financial stability.
“…this calls for coordinated effort to accelerate
provision of financial services to Tanzanians by all members of this
Forum…,” she appealed.
SOURCE:
THE GUARDIAN
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