Financial institutions have always featured highly in the PricewaterhouseCoopers’
Survey of East Africa’s Most Respected Companies. In spite of this Tanzanians have not
been rushing to deposit their money in bank accounts, as can be seen from the country’s
very low savings ratio of 10.5% of GDP. Partly this reflects the relatively limited real
returns for savings. However, it may also reflect an inherent fear of entrusting money to
banks especially after the experience of banks such as Greenland Bank, Meridian Biao
and Trust Bank. So, how safe is your money in the bank, and what role does the bank’s
capital have in this regard? What are the capital adequacy requirements all about?
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