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Financial Cooperative Societies Regulations 2004
For savings and credit cooperative societies incorporated under the Cooperative Societies Act 2003
This document provides the regulations on financial cooperative societies under the Banking and Financial Institutions Act of Tanzania.
The provisions of the regulations state:
- Prior to extending a license, the Bank of Tanzania shall perform a complete examination of the financial condition of the applicant;
- A financial cooperative shall maintain a core capital made up of members' shares, 20% of retained net earnings and 10% of savings yearly, until the capital reaches a minimum of Tshs. 800million;
- Not less than 20% of the annual net surplus shall be dedicated to the creation of general reserves for unanticipated losses;
- No member of a financial cooperative shall hold more than 20% of the outstanding shares, except when approved by the Bank of Tanzania to address a situation of financial distress;
- Financial cooperatives shall maintain minimum cash balances on deposit with the Bank of Tanzania, as reserves against the deposit and other liabilities;
- The Bank of Tanzania shall revoke the license and instruct the Registrar of Cooperatives to cancel the registration of any financial cooperative that becomes insolvent.
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