Tanzania Government Tells Banks to Go Rural

The Tanzanian government has advised banks and non-bank financial institutions to extend to rural areas if they wish to be used to channel payments of public servants.

The Deputy Minister for Finance and Economic Affairs, Mr Mwigulu Nchemba, said in Dar es Salaam over the weekend that the government was currently using CRDB Bank and the National Microfinance Bank (NMB) to channel payments to civil service workers all over the country because of their wide network.

“If other banks will also want the government to use them in payment of workers’ salaries, they should expand their branches in all the parts of the country including the rural areas,” said Mr Nchemba during the inauguration of the Diamond Trust Bank (DTB) Upanga branch.

He pointed out that his ministry has endeavoured to create an enabling environment with clear guidelines governing banking sector in the country.

“We have instituted clear risk management and compliance guidelines consistent with Base II principles,” he pointed out.

The Minister stressed the Bank of Tanzania (BoT) had developed guidelines covering capital adequacy, a robust supervisory review process and market discipline while being aligned with conventional banking.

“DTB is one of the fastest growing banks in the country based on consistent balance sheet growth and increasing branch networks,” he said.

DTB Bank Group CEO, MS Nassim Dewji said that their customers will enjoy extended banking hours of 7 days a week.

Originally published on DailyNews Tanzania

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