FINANCIAL INST. DEV.

closed

Closed

The Government of Tanzania wishes to implement a strategy which would address the fundamental weaknesses in the financial sector while building the foundation for the diversification of financial instruments. The main elements of this strategy are: 1) encouraging competition in the commercial banking sector; 2) strengthening banking regulation and supervision; 3) improving the payments mechanism especially in rural areas; 4) promoting and supporting comprehensive parastatal reforms, including privatization, of state owned enterprises; 5) developing a market for Government securities; 6) establishing a regulatory structure for securities and insurance markets; and 7) developing a corporate securities market. In this context, the primary objectives of the Financial Institutions Development Project are to develop a market oriented financial system and to ensure the orderly and gradual evolution of capital markets. The project will include the following components: 1) restructuring and privatization of National Bank of Commerce and People's Bank of Zanzibar within an agreed timetable; 2) strengthening of Bank of Tanzania's Supervision Directorate; 3) developing a mechanism for regulating the insurance industry; 4) studies on possible improvements to the payments system and the feasibility of a private credit information bureau; and 5) technical assistance to develop an appropriate mechanism for regulating and overseeing the evolution of a capital market.

FY17 - Financial Sector,FY17 - Public Administration

World Bank Group

Project

Commercial, Government