The impact of policies and regulations on the performance of commercial banks in Tanzania, The case of CRDB and NMB banks
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Date
2019
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Publisher
Mzumbe University
Abstract
This Dissertation studied what was perceived to be the current problem facing the banking sector today following the unsatisfactory performance for the past three years (2015-2017). Many have been said regarding the poor performance of the banking sector. Hence, this study examines the cause of the problem. The study used Questionnaires and interview methods to arrive to the conclusion. Case study research design was used where CRDB and NMB Banks were selected as our sample study.50 respondents were obtained using purposive and simple random sampling techniques. 10 key respondents were interviewed to get their perceptions on the banking sector's performance. The secondary data collected confirmed our prior suspicious of the problem under study. The findings indicated that poor performance of the banking was the result of introduction of new government policies and regulations found in the Banking and financial institutions Act,2014 and adoption of the international banking standards such as Basel I, II and III. Some of policies introduced by the fifth government of Tanzania such the tight spending, verification of civil servants, transfer of funds to BoT, squeeze of the money supply and government intervention in cash crops business were also factors for poor performance. The results have shown that the non-performing loans (NPLs) had a negative impact on the performance of the banking sector. This was the result of compliance with some regulations that shall be discussed in detail later. The results have also shown that both capital adequacy and liquidity positions of the banks were affected
following the decision of the government to transfer funds to BoT and the tight spending policy. Some Banks especially NMB was affected by the decision of the government to remove the civil servants with fake certificates. The squeeze of Money supply in the economy had a great impact in the banking sector.
Description
A dissertation submitted in partial fulfillment of the requirements of the award of Master of Business Administration in Corporate Management Degree (MBA-CM) of Mzumbe University
Keywords
Performance of Commercial Banks-Tanzania, CRDB , Bank- Policies and Regulation, Banks Performance, Banking Industry, NMB, Funds transfer
Citation
APA