TMRC is a financial institution. As a non-deposit taking institution, it is regulated by Bank of Tanzania under the Banking & Financial Institutions Act 2006, with some additional regulatory privileges.

TMRC is licensed as a non deposit taking financial institution with clear limitations on its scope of business, limiting it to its core activity of refinancing mortgages. Additionally, as TMRC is intending to seek funding by issuing bonds, it will also have to be licensed and regulated by the CMSA.

Transparent and effective regulation of TMRC are critical to build confidence in the bonds it will issue. A strong Regulator is important in instilling the confidence in TMRC that is required by potential investors. The role of the Regulator, amongst others, include powers to review financial information, monitor capital adequacy, review risk management procedures, and assess the quality of management. TMRC must be seen as an entity that addresses a gap in the mortgage and bond markets or corrects a ’market failure’, rather than as a Government tool to exert undue influence on banks’ decisions as this may distort TMRC’s mandate.


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