Assessing the Exposure of Tanzania’s Banks to the Risk of Failure

Salome Michelle Akite

Abstract: The liquidation of 8 banks-between 2016 and 2018 pointed to the re-emergence of the bank failure trend that characterized the 1990-2005 period, and raised questions as to the potential for a fully-fledged systemic banking crisis within Tanzania. Therefore, the study, though descripto-explanatory research design aimed at scanning for early warning indicators of bank failure risk arising from institution specific and regulatory deficiencies.  Findings showed bank’s internal control systems to be riddled with specific gaps despite to a large extent being robust; and the central bank to have inadequate minimum bank capital requirements, liberal licensing polices, to be overly reliant on offsite rather than onsite supervision and to be subject to political interference.  

Keywords: Bank Failure, Risk, Banks, Tanzania.

Title: Assessing the Exposure of Tanzania’s Banks to the Risk of Failure

Author: Salome Michelle Akite

International Journal of Management and Commerce Innovations

ISSN 2348-7585 (Online)

Research Publish Journals

Vol. 6, Issue 1, April 2018 – September 2018

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Assessing the Exposure of Tanzania’s Banks to the Risk of Failure by Salome Michelle Akite