Abstract:
Financial support from the banking industry and other financial institutions is a key element for a business to succeed in their move towards contributing to the poverty alleviation, creation of employment, winning business competitions and increase productivity capacities. Without finance, small entrepreneurs cannot acquire or absorb new technologies nor can they expand to compete in the global markets or even strive to business linkages with large firms. Failure to finance access has been cited as a major problem in recent years. However, there are significant perceptions as to the size and causes of financing gap.
The major objective of the study was to identify impact caused by privatizing banking industry in Tanzania. A detailed relevant literature, review was done so as to set the study within its wide context and to show the reader how the study supplements the work that has already been done. A case study designed was adopted where NBC, was chosen as a case.
Findings of this study show that there is a major positive effect by privatizing bank industry due to great changes done by those who might have taken the business by expand the business which result increase in employment, increase number of branches which brought services near citizen, also they brought new technologies which facilitate the use of bank services without being in the bank premises for example the use ATM machine, Internet Banking, On line payment service example –purchase of Luku, Telephone credits and the payroll processing service.
