2003年-世界发展银行全球_Tanzania___Financial_Sector_Assessment_10页_1mb

Tanzania Financial Sector Assessment Summary (August 2003)

I. Core Content and Main Findings

Tanzania's financial sector has undergone significant reforms over the past few years, including the restructuring of major banks, opening up to private sector participation, and liberalization of financial intermediation. These reforms have laid the groundwork for a more stable and efficient financial system, though progress has been uneven and the sector remains underdeveloped in terms of credit depth and accessibility.

Despite macroeconomic stabilization and policy improvements, access to financial services remains limited, particularly in rural areas. Banks have been cautious in expanding credit due to the legacy of non-repayment in the 1990s and the high risk premium. The credit-to-GDP ratio remains low at around 6%, and the average loan-to-deposit ratio is only 34%, indicating a need for more proactive measures to enhance credit availability.

The privatization of state-owned financial institutions is ongoing, with the National Microfinance Bank (NMB) being the most critical. Its extensive branch network and deposit base suggest potential for growth in credit provision. However, its governance and business model require attention to ensure long-term sustainability. The Tanzania Postal Bank (TPB) and Tanzania Investment Bank (TIB) also remain in public ownership, though their roles are expected to evolve toward more limited functions or potential mergers.

The insurance sector, while newly opened to competition in 1998, is still hindered by the poor condition of the National Insurance Corporation (NIC). Rehabilitation of NIC is challenging, and its closure may be necessary without a credible buyer. A national reinsurance company is not recommended at this time.

The financial system is characterized by high liquidity, driven by pension funds and insurance companies. However, the depth of the market remains a concern, particularly in the interbank and bond markets. The Bank of Tanzania (BOT) is advised to reduce market interventions and promote market development.

II. Key Priorities and Recommendations

1. Reform of Government-Owned Financial Institutions

• Sell a substantial majority stake in NMB to a qualified buyer.
• Initiate privatization of TIB, either as is or in stages.
• Limit TPB's credit expansion and transform it into a narrow bank, possibly supporting NGO-based MFIs.
• Close NIC to new business if no buyer is found, and avoid establishing a national reinsurance company.

2. Legal and Judicial Reform

• Address land law issues to facilitate credit to landed property while preserving borrower protections.
• Strengthen minority shareholder protections in the Companies Law.
• Increase resources for the Commercial Court to expedite case resolutions.
• Modernize land and company registries and align accounting standards with international norms.

3. Enhancing Access to Financial Services

• Clarify regulatory frameworks for smaller MFIs and adopt a lighter regulatory approach.
• Encourage the development of umbrella organizations and promote local bank financing for MFIs.
• Establish a credit registry/bureau system under BOT’s leadership.
• Clarify regulations on leasing companies and avoid creating special SME windows that may disrupt self-sustaining SACCOs and NGO-based MFIs.
• Develop payment system infrastructure to support retail and rural money transfers.

4. Long-Term Investment and Pension Funds

• Liberalize investment requirements for insurance companies.
• Encourage securitized loans and guaranteed bonds from pension funds instead of opaque government lending.
• Exercise caution in selling state-owned enterprises into unit trusts for public sale.

5. Managing Liquidity and Market Infrastructure

• Develop a sterilization plan to manage liquidity inflows.
• Conduct analytical work on money demand to support adaptive monetary policy.
• Reduce frequency of market interventions and promote interbank and forex market development.
• Improve transparency in monetary and debt market operations.
• Clarify BOT’s oversight role in payments and securities settlement systems and address identified risks.

6. Bank Regulation and Supervision

• Review and relax overly restrictive regulations (e.g., collateral requirements, loan limits).
• Tighten loopholes (e.g., exposure to offshore banks).
• Transition to a risk-based supervision system and enhance both on-site and off-site monitoring capabilities.

7. Crisis Preparedness

• Develop a comprehensive crisis prevention and management plan.
• Clarify the role of the BOT as a lender of last resort (LOLR).
• Restrict the role of the Deposit Insurance Fund (DIF) to a pay-box function.

8. Taxation Issues

• Review the deductibility of loan-loss provisions and reserve requirements.
• Consider tax treatment at the pension payment stage.
• Recalibrate capital gains taxation on new share issues.

III. Conclusion

Tanzania’s financial sector is on a path of recovery and reform, but significant challenges remain in credit accessibility, regulatory clarity, and market development. A balanced approach is required to support both formal and informal financial institutions, ensuring that reforms do not undermine the development of self-sustaining microfinance and rural financial services. Strengthening legal, judicial, and regulatory frameworks, along with improving payment and settlement systems, will be crucial for long-term stability and growth. The role of the BOT in maintaining macroeconomic stability and supporting market development must be clear and transparent.