Financial sector reforms in Tanzania had posed a number of challenges to the Depository Financial Institutions (DFIs), particularly on assets and liabilities management. In line with the reforms, are the regulations issued by the Bank of Tanzania as guidelines to maintain an efficient and sound financial system. The regulations pose a challenge to DFIs in their assets and liabilities management, since apart from the need for profit, they also need to comply with the regulations. This study was designed to analyze the impact of Financial Institutions (FIs) regulations on the assets and liabilities management in depository financial institutions in Tanzania. The study has used both primary and secondary data. Interviews were made with the senior officials of depository financial institutions in particular with emphasise to the members of Assets and Liabilities Committees (ALCO). The results show that, significant importance is given by the top management to the assets and liabilities management function. It also revealed that, there is a positive influence of regulations on the composition of assets and liabilities. However, the current FIs regulations promote efficient utilization of assets and liabilities in the FIs. The critical regulations and the general laws in implementation of assets and liabilities management were identified.