Historical Background
As part of the Financial Sector Reform Programme, Tanzania Postal Bank (TPB) was established by the Tanzania Postal Bank Act No.11/1991 as amended by Act No.12 of 1992. This bank became operational as a separate entity from the then Tanzania Posts and Telecommunications Corporation (TP&TC) from 1st March 1992 with its own Board of Directors and Management. It was established as a successor to the Tanganyika Post Office Savings Bank (TPOSB), which was established by the Post Office Savings Bank Ordinance of 1925 and became operational in 1927.
The creation of this new bank took into account its strengths and particularly the advantage of canvassing the masses both in urban and rural areas.
The TPB Act that was passed by the Parliament addressed itself to some of the basic problems, which were besetting TPOSB performance. Among others, it provided for a legal framework that made it a corporate body.
Objectives and Functions
In accordance with the TPB Act, the bank's objectives and functions are: -
• To mobilize local savings and to promote the savings habits of the population.
• To provide in accordance with the provisions of the Banking and Financial Institutions Act of 1991 adequate and proper banking services and facilities throughout the United Republic.
• To mobilize resources by accepting deposits, floating bonds, debenture and other monetary instruments.
• Subject to the provisions of the Act, to administer such special funds as may from time to time be placed at the disposal of the bank.
• To undertake any other functions performed by commercial banks.
Vision and Mission Statements
Vision
“To be the Bank of choice for individuals, Micro, Small and Medium Enterprises”.
Mission
“To provide our customers with modern, affordable, tailor-made banking and other financial services.”
Values
*Customer Focused
*Service to Everyone
*Committed Team
*Responsible
*Simplicity
Governance
The bank has its own Board of Directors representing the shareholders. This is responsible for policy formulation, whereas below it is the Chief Executive Officer (CEO) who is responsible for the day-to-day operations. This post is filled in on the basis of relevant qualifications and experience and on a competitive basis. Arrangements are under way to make this post together with those who report to him more performance based.
The CEO is assisted by Head of Banking Operations, Finance, Internal Audit, Marketing and Business Development, Risk Management, Research and Planning, Human Resource Administration and Procurement, Credit, Information Communication Technology, Compliance, Legal Services and Secretary to the Bank.
Share Capital
The TPB Act stipulates the bank’s authorized share capital to be Tshs.1,000 million divided into one million shares. Each share has a par value of Tshs.1,000/=. In an endeavour to enable the bank have the required capital base to finance its expansion programmes and thereby maintain its ratio of fixed assets to core capital within the Banking and Financial Institutions (BFI) Act, at the Annual General Meeting held in 1994, the Shareholders resolved to raise the authorized share capital to Tshs.2,000 million.
Tanzania Postal Bank is owned by the following shareholders with their paid up shareholding proportions as indicated here below:-
| S/N |
SHAREHOLDER |
VALUE OF SHARE (TZS Thousands) |
% |
| 1 |
United Republic of Tanzania |
747,450 |
45.3% |
| 2 |
Revolutionary Government of Zanzibar |
181,500 |
11.0% |
| 3 |
Tanzania Posts Corporation |
547,800 |
33.2% |
| 4 |
TP & TC SACCOS |
173,250 |
10.5% |
| |
TOTAL |
1,650,000 |
100.0% |
LIST OF TANZANIA POSTAL BANK BOARD OF DIRECTOR
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