THE BANKING AND FINANCIAL INSTITUTIONS (CAPITAL ADEQUACY) (AMENDMENT) REGULATIONS, 2023

1. These Regulations may be cited as the Banking and (Capital Adequacy) Financial (Amendment) Regulations, 2023 and shall be read as one with the Banking and Financial Institutions (Capital Adequacy) Regulations, 2014 hereinafter referred to as “the principal Regulations”.

2. The principal Regulations are amended in regulation 3 by- deleting definitions of the terms “core capital” or “Tier 1 capital”, “supplementary capital” or “Tier 2 capital” and “total capital” and substituting for them the following: ““core capital” or “Tier 1 capital” means permanent shareholders’ equity in the form of issued and fully paid ordinary shares, and perpetual non-cumulative preference shares, capital grants and disclosed reserves less year todate losses, goodwill organization, pre-operating expenses, prepaid expenses, deferred charges, leasehold rights and any other intangible assets; 1 Banking and Financial Institutions (Capital Adequacy) (Amendment GN. NO.12 (Contd.) “supplementary capital” or “Tier 2 capital” means general provisions which are held against future, presently unidentified losses and are freely available to meet losses which subsequently materialize, subordinated debts, cumulative and redeemable preferred stocks, and any other form of capital as may be determined and announced from time to time by the Bank; “total capital” means the sum of core capital and supplementary capital;”. Dar es Salaam, FLORENS D.A.M. LUOGA, 9th January, 2023 Governor 2