Factors influencing performance in savings mobilization in financial institution in Tanzania: the case of national bank of commerce and Tanzania postal bank

The main objective of this study was to ascertain the factors influencing performance in savings mobilization in financial institutions in Tanzania, with particular focus on NBC and TPB. The thrust of the study was to analyse how interest rate, inflation, income o per capita and competition influence the performance in savings mobilization in financial institution. The study used regression and chi-square analysis. Regression used to analyze time series data obtained from BOT and Annual reports of NBC and TPB. The chi-square used to analyze data collected by a structured questionnaire. The results revealed that inflation and interest rates has insignificant effect on savings mobilized by TPB and NBC. Other findings show that, income per capita and competition have positive impact on savings mobilized by banks covered by this study in Tanzania. Therefore, financial institutions in collaboration with the government should call for the policy measures, which may help to stabilize prices so that people and companies may save, also BOT should strengthen regulatory and supervisory role in order to restore people's confidence on banking system. The policy should target at increasing the rate of return of the potential savers.