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The Management of Risk Assets Regulations, 2001
A directive to facilitate asset management in banks
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This document is the regulation for management of all risk-prone assets in all the licensed banks and financial institutions in Tanzania.
The regulation provides the general application and interpretation of the Act and stipulates the following:
- Maintaining a high level of public confidence and also ensuring the integrity of financial reports at all times;
- Maintaining a credit policy that outlines the procedures followed for evaluation, processing, documentation and release of credits and also an investment policy that enables diversification of credit risks;
- Instituting a system that reviews the entire asset portfolios of the banks on a regular basis;
- Classifying all outstanding loans and other risks assets, doing a qualitative appraisal of them and submitting a quarterly report on the same to the Bank of Tanzania;
- Making an allowance for taking care of losses of the banks and provisioning for making temporary equity investments and also for meeting contingency requirements.
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