Core function page
For an effective Deposit Insurance system, the core functions put the mission and vision into practice, hence living up to the reasons for its existence. DIB core functions are provided for in the Banking and Financial Institutions Act, 2006 as fund management and reimbursements
DIB is responsible for management of the Deposit Insurance Fund as provided by the law.
The DIB levies and collects premium from banks and deposit taking financial institutions. Currently, the premium assessment rate is 0.15 percent of the annual average total deposit liabilities of each member institution of the Deposit Insurance Fund. The DIB also reimburses depositors their insured deposits and conducts liquidation of a failed bank or deposit taking financial institution when appointed by the Bank of Tanzania.
The DIF received its initial contribution of TZS 1.5 billion from the Government as start-up fund and subsequently continued to receive annual premium from member institutions and interest on its investments. By end of June 2017, the DIF had grown to TZS 357.50 billion.
Reimbursements & Deposit protection
The DIB responsibility is to provide protection to depositors’ funds against loss arising from failure of a bank or deposit taking financial institution (to the extent provided by the law) so as to maintain depositors’ confidence in the banking system. Currently, the maximum coverage is TZS 1.5 million per depositor per bank. Currently, the insured deposits cover 95% of insurable deposit accounts.