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Financial Sector Reforms and the Significance to Banking Sector in Tanzania

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Corporate Finance and Financial Development

Part of the book series: Contributions to Finance and Accounting ((CFA))

Abstract

The predominance of the banking sector amid the reforms made on the entire financial sector owes to the initial existence of the banks as well as the nascent growth of the other financial sector players. This study undertook an assessment of the Tanzania banking sector to observe the notable contribution of the reforms to the sector in Tanzania through review of extant literature, documentaries, and analyses via descriptive statistics. The review found evidence that suggest that the reforms made substantial impact on the development of the banking sector which forms the systemic component of the financial sector. This was supported by existance of prudent legal and regulatory as well as supervisory frameworks to ensure the stability of the financial system and economy at large. Conversely, the review notes that the substantial functioning of the banking sector largely depends on the effective functioning of the category of commercial banks that is largely dominant. However, the observed performance comforts as banks denote adequate capital positions, liquidly position, as well as contained asset quality for the past 10 years.

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Notes

  1. 1.

    The EAC and SADC targets are utmost 8.0% and a range of 3–7%, respectively.

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Authors and Affiliations

  1. School of Accounting, Economics and Finance, University of KwaZulu-Natal, Durban, South Africa

    Khadijah J. Kishimba & Paul-Francois Muzindutsi

  2. Department of Accounting Science, Walter Sisulu University, Mthatha, South Africa

    Joseph O. Akande

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  1. Khadijah J. Kishimba
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Editors and Affiliations

  1. Department of Management Accounting, Durban University of Technology, Durban, South Africa

    Shame Mugova

  2. Department of Accounting Science, Walter Sisulu University, Mthatha, South Africa

    Joseph Olorunfemi Akande

  3. Faculty of Business and Law, Coventry University, Coventry, UK

    Odunayo Magret Olarewaju

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Kishimba, K.J., Akande, J.O., Muzindutsi, PF. (2022). Financial Sector Reforms and the Significance to Banking Sector in Tanzania. In: Mugova, S., Akande, J.O., Olarewaju, O.M. (eds) Corporate Finance and Financial Development. Contributions to Finance and Accounting. Springer, Cham. https://doi.org/10.1007/978-3-031-04980-4_7

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