BoT to issue new rules to check MFIs

Bank of Tanzania headquarters in Dar es Salaam. Some lenders charge up to 200 per cent of the principal amount. Photo/FILE

By WILFRED EDWIN

The Bank of Tanzania is formulating a mechanism to regulate non-banking microfinance institutions, Bank Governor Prof Benno Ndulu has said.

The new regulations are aimed at checking on the mushrooming of such institutions that exploit investors, particularly the ignorant lot.

The move by BoT comes in the wake of growing public concern over a number of local microfinance companies offering “easy loans” at excessively high rates. More...


[SOURCE: The EastAfrican]