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About Deposit Insurance Board

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Board of Directors of the Deposit Insurance Board

Board Members




Legal Framework Governing the Fundís Operations

Auditors 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 BFIA, 2006.


i) To be financially, organizationally and functionally independent.

ii) To be operationally responsive to depositors, banks and non banks in Tanzania.

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 institutions.


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, DIB:-

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 institutions.

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 its behalf.

d) Investment of the Fund's resources to the Government Securities

Legal 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 Board.

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 and half percent of the average of the bank or financial institution total deposit liabilities during the past 12 months from the date of notice.

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 institution.

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.

Board of Directors of the Deposit Insurance Board

The Board consists of:-

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 Zanzibar, and

d) three other members appointed by the Minister of Finance

Auditors of the Deposit Insurance Fund

Office of the Controller & Auditor General,
Samora Avenue/Ohio Street
P.O. Box 9080,
Dar -es -Salaam.

Tel. 255 (0) 22 115157/8

E-mail : ocag@nao.go.tz

This page was last updated on 24/May/2011


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