An investigation of the impact of deposits, lending and banking regulations on the Performance NBC Ltd., In Dar es Salaam

Every different economic and political situation through which Tanzania has passed since her independence had an impact to the performance of commercial banks. Unfortunately such impacts have been unfavourable to growth of the country economy in general. The entire financial sector was a government monopoly that suffered consequences of priority sector lending, on market determined rates of interest, government interference to management of financial institutions, stagnated sector-growth and corruption. The reforms of the financial sector in the country have been very fruitful in ending monopoly and interference of government in the country. However there are a lot efforts needed to combat the problems of: non repayment of loans, insensitivity of customers to interest rates, high lending rates, low deposit rates and contagion effects that originate from mother banks in abroad. Management of a commercial bank is made aware through this study that it should always strive to reconcile college or university education and economic and social circumstances of the environment in which it operates.