BOARD OF DIRECTORS

The Board of Directors of the Bank of Tanzania (The Bank) is a supreme policy decision body in the Bank’s hierarchical structure. It consists of ten persons, four of whom are ex-officio members. By law, the Board of Directors is mainly responsible for determining the policy of the Bank, approval of its budget and allocation of profits arising from its operations. In its functioning, the Board is currently assisted by three Committees of the Board, namely, the Standing Committee, Banking Supervision Committee and Audit Committee.

The Standing Committee is a statutory creation. That notwithstanding, it assumes functions as delegated by the Board. These include, among others, review of monthly monetary policy targets. The composition of this Committee include the Governor (Chairman), the Deputy Governor, Permanent Secretary to the Treasury of the United Republic, Principal Secretary to the Treasury of the Revolutionary Government of Zanzibar and two other members of the Board. The Committee meetings are held monthly.

Consistent with the powers reserved by the Board under the statutes, certain functions have also been delegated to Banking Supervision and Audit Committees of the Board. Meetings of these Committees are normally held one day before every Board meeting, and reports on proceedings of previous meetings are tabled before the full Board. The Governor chairs the two Committees as well.

BOARD MEMBERS

Members of the Board (other than ex-officio) hold office for three years, and are eligible for reappointment. The tenure of office of the Governor and Deputy Governor is also by law limited to two five years terms. Board meetings are held regularly as the conduct of business of the Bank requires but not less frequently than once in every two months. Under the Act establishing the Bank, the Governor is, in unusual circumstances requiring an urgent decision which cannot await the convening of a normal meeting, empowered to convene a meeting of the Governor (or Deputy Governor in his absence) and Principal Secretary to the Treasury of the United Republic of Tanzania. Decisions arising out of such meetings are valid and binding. It is however a requirement of the law that such decision be reported to the Board at its next regular meeting.

Members of National Assembly, Local Government Authority, Civil Servants or directors, employees, consultants, shareholders of banks or financial institutions in respect of which the Bank may exercise regulatory power are disqualified to be Directors of the Bank.

Thursday 25 May 2006