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Financial Cooperative Societies Regulations 2004
For savings and credit cooperative societies incorporated under the Cooperative Societies Act 2003
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9 pages
This document provides the regulations on financial cooperative societies under the Banking and Financial Institutions Act of Tanzania.
The provisions of the regulations state:
- Prior to extending a license, the Bank of Tanzania shall perform a complete examination of the financial condition of the applicant;
- A financial cooperative shall maintain a core capital made up of members' shares, 20% of retained net earnings and 10% of savings yearly, until the capital reaches a minimum of Tshs. 800million;
- Not less than 20% of the annual net surplus shall be dedicated to the creation of general reserves for unanticipated losses;
- No member of a financial cooperative shall hold more than 20% of the outstanding shares, except when approved by the Bank of Tanzania to address a situation of financial distress;
- Financial cooperatives shall maintain minimum cash balances on deposit with the Bank of Tanzania, as reserves against the deposit and other liabilities;
- The Bank of Tanzania shall revoke the license and instruct the Registrar of Cooperatives to cancel the registration of any financial cooperative that becomes insolvent.
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