About the Bank

Central Banks: 

Subsidiary Functions of the Bank

Apart from the primary function, the Bank of Tanzania has important subsidiary central banking functions.

 1. The Bank of Issue

The Bank has the sole right to issue notes and coins in Tanzania for the purpose of directly influencing the amount of currency in circulation outside banks, thereby providing the economy with sufficient, but if possible, non-inflationary liquidity.

 2. The Bankers’ Bank

This function includes the acceptance of deposits to act as prudential reserves for these banks (i.e., the Minimum Reserves), the willingness to discount commercial and government paper, and the commitment to act as lender of last resort to these banks. It also involves the provision of central clearance facilities for interbank transactions.

 3. The Governments’ Bank

The Bank is the banker and the fiscal agent for the Governments, and may be the depository of the Governments. The Bank may make temporary advances to the Governments through its overdraft facility, subject to repayment within 180 days and through purchases (direct or rediscounting) of treasury bills issued by the Governments, which mature not later than 12 months from the date of issue. The total amount outstanding at any time of advances made in this manner shall not exceed one eighth of the average budgeted revenues (average of the actual collected revenues of the previous three fiscal years, excluding loans, grants, other forms of economic aid, and all borrowing, whether short-or long-term) of each Government.

 4. The Advisor to the Governments

The Bank may advise the Governments on any matter relating to its functions, powers, and duties. The Bank may also be requested to advise the Governments on any matter related to its functions, powers, duties, the credit conditions in Tanzania, or any proposal, measures, and transactions relating thereto.

 5. The Guardian of the Country’s International Reserves

The Bank is the depository of the official external assets of Tanzania, including gold and foreign currency reserves. Guarding international reserves may imply the determination of buying and selling rates of gold and foreign exchange in foreign exchange markets and/or the buying and selling of reserve assets for the purpose of sustaining the national currency’s external value. It also includes reserve management, with a view to the prudential investment of the funds, with due regard to safety, liquidity, and profitability, and external debt management.

 6. Supervision of Banks and Financial Institutions

In general, this activity involves ensuring that commercial banks and other financial institutions conduct their business on a sound prudential basis and according to the various laws and regulations in force. It includes the supervision of banking conduct and the licensing of financial institutions.

According to the Banking and Financial Institutions Act of 1991, and the new BOT Act, the main responsibilities of the Bank of Tanzania are:

a) implementation of prudential controls concerning capital adequacy, liquidity, concentration of credit and risk diversification, asset classification and provisioning, and prohibited activities;

b) licensing of banks and financial institutions;

c) facilitation and monitoring of a Deposit Insurance Fund, the purpose of which is the protection of small depositors; and

d) modification and monitoring of the Minimum Reserve Requirements and foreign exchange exposure.

 7. Promotion of Financial Development

This refers to the establishment of an effective financial system, with the aid of which financial transactions necessary for the smooth functioning of the economy can be carried out with a minimum amount of cost and time involved. In this connection, the Bank has to be a facilitator of advanced clearing and transfer systems. It also implies that the necessary banking services, as, for example, deposit facilities and loan facilities, are made available. Included here is also the availability of certain specialised institutions, which could be represented, for example, by an industrial development bank and/or an agricultural development bank and micro-finance institutions, and the facilitation of a money market, a capital market, and a foreign exchange market.

Central Banks: 

The Bank of Tanzania Act

The Bank of Tanzania is the central bank of the United Republic of Tanzania. It came into operation on June 14th 1966, under the Bank of Tanzania Act, 1965. The Act empowered the Bank of Tanzania to perform all the traditional central banking functions. The Bank of Tanzania Act, 1995 replaced the earlier Act with the primary objective of establishing monetary conditions conducive to Price Stability over time. The objective is to formulate and implement monetary policy in line with the Bank’s mission to maintain price stability that is conducive to the attainment of financial and macroeconomic stability, with the objective of promoting a high and sustainable rate of economic growth.

The Bank of Tanzania Act, 2006 replaced the 1995 Act. The new Act among other issues, provide for more responsive regulatory role of the Bank of Tanzania in relation to the formulation and implementation of monetary policy, and the supervision of banks and financial institutions.

PDF icon Bank of Tanzania Act, 200688.87 KB
Central Banks: 

Vision, Mission and Values

Our Vision:

"To be a world-class model central bank focused on its core objectives with a highly qualified and motivated staff that has access to the state-of-the-art technology".

 Our Mission:

"To maintain price stability that is conducive to the attainment of financial and macroeconomic stability conducive to a balanced and sustainable growth of the national economy of Tanzania".

 Value Statement:

“We are committed to maintaining high standards of corporate integrity and social responsibility. Sharing of knowledge and experiences openly within and across our business shall be of paramount importance. In striving for excellence, we shall train and empower staff and focus resources on performance initiatives that deliver desired results. Those results include the promotion of the development of a strong, modern and efficient financial system to serve the national economy of Tanzania.” 

The Bank’s core values are specified as follows:

i. Creativity

 We put emphasis on generating workable and innovative ideas and techniques to improve current practices or processes; we exploit new technologies to create better ways of conducting our business and create a conducive environment in which every member of staff questions status quo, generates new ideas and learns constantly.

ii. Empowerment

We seek to improve effectiveness and efficiency by creating a framework within which members of staff at all levels can exercise control over their work and take responsibility for their actions. Through appropriate leadership/managerial practices and structures, we take deliberate steps to develop our staff, involve them in finding solutions to specific issues and problems and create a shared vision and corporate values.

 iii. Accountability

As supervisor and regulator of the financial system we respond appropriately to stakeholder concerns. We take responsibility and ownership of all that we do at corporate and individual employee levels; we build the required capacity and create the enabling environment for staff to meet performance standards, own up the results of their actions, learn and innovate effectively on the basis of those outcomes/results.

 iv. Teamwork

We expect our staff to be team players. We believe in teamwork to harness multiple skills and experiences of our staff to accomplish key work objectives and promote cooperative behavior among staff. We seek contributions of all staff to improve quality of outputs and organizational effectiveness. We shall carefully select team members, set realistic goals for teams, assess and recognize their performance as appropriate.

 v. Excellence

 We seek the highest quality of performance possible in all that we do. To achieve this, we set directions and clear performance goals in a participatory manner. We create requisite structures, employ appropriate management styles and invest heavily in training and development of our staff to enable them attain desired levels of professionalism necessary for achieving excellence in their jobs. We assess regularly employee performance and recognize extraordinary achievements through a rigorous procedure.


Microsoft Office document icon BOT- Vision, Mission and Values29 KB
Central Banks: