About Deposit Insurance Board
of Directors of the Deposit Insurance Board
Legal Framework Governing the Fundís Operations
of the Deposit Insurance Fund
The Deposit Insurance Board (DIB) is a body
corporate whose establishment and existence have been provided for
under section 37(i) of Banking and Financial Institutions Act, 2006
(BFIA). According to this legislation, DIB is responsible for policy
formulation, management and control of the Deposit Insurance Fund
(DIF) which exists by virtue of the provisions of section 36 (i) of
i) To be financially,
organizationally and functionally independent.
ii) To be operationally
responsive to depositors, banks and non banks in
iii) To be professionally
managed while maintaining its concern to the welfare of its
officers and staff.
The mission of DIB is to effectively contribute to
the country's financial stability by maintaining public confidence
in the financial system through prompt payment of protected
depositors to depositors of a failed member bank or financial
a) Insurance assessment and premium collection
from banks and financial institutions and
review of insurance coverage from time to time.
b) In collaboration with
Banking Supervision of the Bank of Tanzania,
i) Monitors the health of
banks and financial institutions, examines and identifies risk areas or
weaknesses through off-site and on-site examination.
ii) Institutes corrective measures to prevent
closure of banks and financial institutions through
restructuring/rehabilitation or provide financial assistance to
distressed banks and financial
c) In the event of a closure of a bank or
financial institution, the Bank of Tanzania, may appoint the
Deposit Insurance Board to deal with Claims and Liquidation. In
such event, DIB takes over and control of all assets,
liabilities and affairs of the closed banks or financial
institution, liquidate assets, settlement of claims for
insured deposits and financial settlement with creditors. In
executing this function DIB may appoint agents to do so on
d) Investment of the Fund's resources to the
framework governing DIB operations
1. The provisions of section 36 (3) Banking and
Financial Institutions Act, 2006 stipulates that:
a) The Fund shall be made up by:
i) Contributions to the Fund by
licensed banks and financial institutions in terms of the
provisions of section 38 of the Law.
ii) Income derived from investment and credited
to the Fund in terms of section 36(6).
iii) Money borrowed for purposes of the Fund in
terms of section 36 (2)
iv) Money received as subventions, grants,
donations or from any other sources may be approved by the
b) Investment of the monies constituting the Fund
is placed in an account with the Bank of Tanzania and invested in
such manner as the Board shall deem appropriate.
c) Payments out of the Fund shall consist of
administrative expenses of the Board.
2. Contribution to the Fund.
a) According to section 38(i) of the Act; all banks
and financial institutions, savings and credit societies or schemes
accepting deposits from the public which the Bank has extended the
application of the provision of the Banking and Financial
Institutions Act, 2006 shall be
contributors to the Fund.
b) The amount of a contribution to
the Fund is set to be not less than one percent of the average total
deposit liabilities of the bank or financial institution
during the period of twelve months prior to date of the notice.
However, the Minister for Finance after consultation with Board by
order, may amend the minimum and maximum amounts of contributions.
Currently the amount of a contribution is set at one tenth of one
percent of the average of the bank or financial institution total
deposit liabilities during the past 12 months from the date of
c) A bank or financial institution
which for any reason fails to pay its contribution to the Fund
within the period specified in the notice, is liable to pay to the
Fund a penalty interest charge not exceeding one-half percent of the
unpaid amount for everyday outside the notice period on which the
amount remains unpaid.
3) Protection of Deposits
a) the amount of protected
deposit shall be the aggregate credit balance of any amounts
maintained by a customer at a bank or a financial
institution less any liability of the customer to the bank or
financial institution to the extent determined by the Minister for
Finance from time to time by order published in the Gazette. The amount of protected deposit
raised from TZS 500,000.00 up to TZS 1,500,000.
b) upon a bank or financial
institution becoming insolvent, a customer of that bank or
financial institution is required to lodge his/her claim with the
Board before payment is made out of the Fund of any protected
deposit which he would but for the insolvency have been paid had
he demanded payment from the insolvent bank or financial
c) before paying any claim
lodged with the Board, the claimant is supposed to furnish the
Board with such documentary proof as may be proper to show that he
is entitled to payment out of the Fund.
d) upon payment of a protected
deposit the Fund shall be entitled to receive from the bank,
financial institution or liquidator, as the case may be, an amount
equal to the insolvency payment paid by the Fund on account of its
subrogation to the claims of any depositor.
of Directors of the Deposit Insurance
a) the Governor of the Bank of
Tanzania - Chairman
b) the Permanent Secretary to
the Treasury - member
c) The Principal Secretary to
the Ministry of Finance of the Revolutionary Government of
d) three other members appointed by the Minister
Auditors of the Deposit Insurance
Office of the Controller &
Samora Avenue/Ohio Street
P.O. Box 9080,
Dar -es -Salaam.
Tel. 255 (0) 22 115157/8
E-mail : firstname.lastname@example.org
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