Guaranty Trust Bank (Tanzania) Limited is committed to adhering to the highest standards of good corporate governance at all levels of its operations. This commitment is rooted in the reputation built on a solid foundation of integrity, professionalism, value adding service delivery and excellent corporate governance.
The Bank is governed by a framework that facilitates checks and balances and ensures that appropriate controls are put in place. The Corporate Governance rubrics of the Bank are designed to ensure accountability of the Board and Management to stakeholders.
The business of the Bank is driven by the Board of Directors which exercises its oversight function through its various Committees, namely; the Board Risk Management Committee, Board Credit Committee, and the Board Audit Committee.
Through these Committees, interactive dialogue is employed to set broad policy guidelines, and to ensure the proper management and direction of the Bank on a regular basis.
In addition to the Board Committees, there are four Management Committees; Assets and Liability Committee, Management Credit Committee, Management Risk Committee and Criticised Assets Committee to ensure effective and good Corporate Governance at the Management level.
These are the Committees which form the bedrock for the long-term professional management of the business of the Bank.
The Board of Directors is responsible for the governance of the Bank and is accountable to shareholders for creating and delivering sustainable value through the management of the Bank’s business.
Having the right people with an appropriate balance of skills, knowledge and experience is an important aspect of corporate governance in order to continue to have an effective Board and an executive management team to steer the affairs of the Bank in an ever challenging environment. The Bank’s rigorous and robust appointment and effective succession planning framework is one way of ensuring that we continue to have the right people to drive the business in the desired direction.
The Board of Directors of the Bank is made up of seasoned professionals who have excelled in various sectors including banking, accounting, mass communication as well as medicine (public health). They possess the requisite integrity, skills and experience to bring to bear independent judgment on the deliberations of the Board and decisions of the Board (without prejudice to Directors’ right to earn Directors’ fees and hold interest in shares). The Directors have a good understanding of the Bank’s businesses and affairs to enable them properly evaluate information and responses provided by Management, and to provide objective challenge to Management. Directors challenge each other’s assumptions, beliefs or viewpoints as necessary for the good of the Bank and question intelligently, debate constructively and make decisions dispassionately.
The Board of Directors of the Bank currently consists of Seven (7) Directors. They are as follows:
The Board Risk Committee is tasked with the responsibility of setting and reviewing the Bank’s risk policies. The coverage of supervision includes the following: Credit Risk, Reputational Risk, Operations Risk, Technology Risk, Market and Rate Risks, Liquidity Risk and other pervasive risks as may be posed by the events in the industry at any point in time. The Terms of Reference of the Board Risk Management Committee includes the following:
The Committee meets quarterly and additional meetings are convened as required. The Head of Risk and Compliance of the Bank presents regular briefings to the Committee at its meetings.
Membership of the Committee is currently made up of Three (3) members comprising: One (1) Non-Executive Director and Two (2) Independent Non Executive Directors.
The Board Credit Committee is responsible for approval of credit facilities in the Bank. The Terms of Reference of this Committee includes but are not limited to the following:
The Board Credit Committee meets at least once in each quarter. Additional meetings are however, convened as required.
Membership of the Committee is currently made up of Three (3) Non-Executive Directors.
The Board Audit Committee is responsible for oversight of audit functions . The Terms of Reference of the Board Audit Committee includes but is not limited to the following:
The Committee is required to hold its Meetings once every quarter.
Membership of the Committee is currently made up of Four (4) members comprising: Two (2) Non-Executive Directors and Two (2) Independent Non Executive Directors.
These are Committees comprising Senior Management staff of the Bank. The Committees are risk driven as they are basically set up to identify, analyze, synthesize and make recommendations on risks arising from day to day activities of the Bank. They also ensure that risk limits as contained in the Board and Regulatory policies are complied with at all times. They provide inputs for the respective Board Committees and also ensure that recommendations of the Board Committees are effectively and efficiently implemented.
The standing Management Committees in the Bank are:
This Committee is responsible for regular analysis and consideration of risks in the Bank. The Committee meets from time to time and at least quarterly. However, additional meetings may be held if required. The Committee reviews and analyses environmental issues and policies impacting either directly or remotely on the Bank, brainstorms on such issues and recommends steps to be taken by the Bank. The Committee’s approach is risk based.
The Committee provides inputs for the Board Risk Management Committee and also ensures that the decisions and policies emanating from the Committee’s meetings are implemented.
The mandate of the Committee includes:
This Committee is responsible for ensuring that the Bank complies fully with the Credit Policy Guide as laid down by the Board of Directors. The Committee also provides inputs for the Board Credit Committee. This Committee reviews and approves credit facilities to individual obligors not exceeding an aggregate sum to be determined by the Board from time to time.
The Management Credit Committee is responsible for reviewing and approving all credits that are above the approval limit of the Managing Director as determined by the Board. The Committee reviews the entire credit portfolio of the Bank and conducts periodic assessment of the quality of risk assets in the Bank. It also ensures that adequate monitoring of credits is carried out. The Committee meets weekly depending on the number of credit applications to be considered.
The Secretary of the Committee is the Head of the Credit Administration Unit of the Bank.
This Committee is responsible for the assessment of the Risk Asset portfolio of the Bank. It highlights the status of the Bank’s assets in line with the Internal and External regulatory framework, and directs appropriate actions in respect of delinquent assets. The Committee ensures that adequate provisions are taken in line with the regulatory guidelines
This Committee is responsible for the management of a variety of risks arising from the Bank’s business including, Market and Liquidity Risk Management, Loan to Deposit Ratio analysis, Cost of Funds analysis, establishing guidelines for pricing on deposit and credit facilities, Exchange Rate risk analysis, Balance Sheet structuring, regulatory considerations and monitoring of the status of implemented assets and liability strategies. The members of the Committee include the Managing Director, Executive Directors, the Treasurer, the Head of the Financial Control Group, the Chief Risk Officer as well as a representative of the Assets and Liability Management Unit.