What are the main functions of DIF/DIB?
A. (i) Risk Management The insurance function of the DIF/DIB deals with the insurance assessment and premium collection from member Banks and non-bank Financial Institutions. It also provides remedial measures to prevent closure by extending financial assistance or guarantee to distressed banks and non-bank financial institutions. (ii) Claims, Receivership and liquidation functions. Claims refers to settlement of claims for insured deposits; Receivership deals with the take-over and control of all assets, liabilities and affairs of the closed bank or financial institution. Liquidation covers the conversion of loans, disposal of fixed assets into cash and implementation of final settlement with creditors. However, in the case of DIB, Receivership and Liquidation is performed only if The Bank of Tanzania appoints DIB as Liquidator of a closed Bank/Financial Institution.
