The law and practice relating to bank capital and its role in Tanzania: the case of the national bank of commerce

In this dissertation an attempt is made to trace the evolution of banking in Tanzania. The effort is focused on the National Bank of Commerce (NBC) which has a monopoly in commercial banking mainly due to its extensive statutory powers and due to its large branch net-work. Chapter Two and Three discuss the predecessors of the NBC. Chapter two covers the colonial commercial banks, and Chapter Three covers the post-independence commercial banks up to their nationalisation in 1967. It has been necessary to use this historical approach in order to demonstrate that even after nationalisation, Tanzania's economy is still in the grips of finance capital. Chapter Four discusses NBC's sources of capital in the light of the nationalisation of commercial banks in 1967. It has placed more emphasis on the mobilisation of deposits in the "rural sector". The purpose in Chapter Five is to contrast such mobilisation with the bank's credit policy towards the "rural sector" where a majority of the population is engaged in agricultural activity. Chapter Five also deals generally with NBC'S utilisation of capital. Chapter Six discusses the relationship between the NBC and other financial institutions within and outside the country. This is done in an effort to see how such relationship affects the bank's sources and utilisation of its capital. Chapter Seven is left to the discussion of the role of banks in a centrally planned economy. This treatment has been necessary because despite Annual Plans, the Credit Plans and the Five Year Development Plans, we have not been able to break away from imperialist finance capital domination, and such plans are always thwarted due to the domination of the economy by finance capital. Chapter Eight is the conclusion. It includes an appraisal of the NBC in the socio-economic environment in which it operates. In the conclusion we point out that although law plays an important role, it cannot alter the basis, and the latter must have its way. The ultimate change must come from the basis - at the level of production-although the superstructure exerts some influence.