Re-examination of the law and practice on credit provision and recovery in Tanzania

It is common knowledge that the banking industry plays a central role in the growth of a country’s economy. This is simply because credit advanced by banks to various sectors of the economy acts as a key force buttressing their performance. Technically, it is impossible to talk of a country’s economy in exclusion of the banking industry. Despite its importance, the banking industry has been facing considerable difficulties in recovering credit they have advanced to borrowers. There have been problems in enforcing securities charged to them too. Causes of these problems are diverse ranging from poor lending practices to delays in the legal process. This study re-examines the law and practice on credit provision and recovery with a view to make a case for a possible improvement. Chapter one constitutes the general introduction in which background information, statement of the research problem, hypotheses, objectives and significance of the study, literature review and research methodology have been given. Chapter two gives a theoretical overview of the law and practice in the country governing credit provision. Chapter Three outline and discusses various securities acceptable by banks and their realization process. Chapter Four summarises data collected during field research and lastly, Chapter Five summarises the findings, makes recommendations and offers some general conclusions.