Analysis of the determinants of bank failures in Tanzania

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University of Dar es Salaam
A sound banking system is undoubtedly a necessary ingredient to support effective macroeconomic policies. In order to achieve banking stability, government has developed a variety of institutional arrangements that tend to promote stability. High on the list are banking laws and regulations that set the ground rules for bank operations. In additional government have established systems for supervising and examining banks. Despite government efforts to promote banking stability, the banking sector in many countries, including Tanzania have experienced serious bank crisis. Banks plays an important role of financial intermediation, which is very vital ingredient of healthy economy. This research focused on the banking sector in Tanzania after banking and financial institutions act (1991); the study carries out analysis of banks failed after the act and causes of such failures and their impact into the Tanzanian economy. The goal of this research was to study the causes and impacts of failed banks and the banks that so far were placed under statutory management by Central Bank. Finally based on the findings, the research gives suggestions to the regulators on what should be done in order to ensure healthiness of banks and financial institutions in the country. Such advices are formulation of appropriate regulations; strengthen of regulatory authority, formulation of appropriate macroeconomic policies and having a good supervision plan within the Central Bank.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG3751.T34M76)
Bank failures, Macro-economics, Financial management, Bank operations, Mobilizing servings
Mrosso, A. M (2008) Analysis of the determinants of bank failures in Tanzania, Master dissertation, University of Dar es Salaam. Dar es Salaam.