BOT Notice to all Banks and Financial Institutions

Reduction of Risk Weight for Residential Mortgages from 100 per cent to 50 per cent

Following recommendations received from various stakeholders of the banking sector, the Bank of Tanzania has considered and decided to reduce the risk weight assigned on residential mortgages for capital charge from 100 percent to 50 percent. The new rate shall only apply to residential mortgage loans as defined in the Banking and Financial Institutions (MOrtgage Finance) Regulations, 2011. This change shall take effect for capital adequacy computation from 31st January, 2015.

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