The Nature of Banking Business in Tanzania and Its impact on poverty alleviation: A critical examination of Dar es salaam based commercial Banks

This study is aimed at identifying the alternative approach in dealing with poverty by regulating activities of commercial banks in such a way that ensures serious commitment on the parts of commercial banks in alleviating poverty. Chapter one lays out the design of the study. Chapter two provides a historical background of the nature and development of banking law in Tanzania. Chapter three examines the poverty agenda and the status of the existing banking laws. Chapter four provides some findings on the extent to which commercial banks in Dar es salaam have contributed towards poverty alleviation. Chapter five concludes the study and gives some recommendations. The methodology used in the collection of data in Dar es salaam involved both library and interview methods. Interviews were conducted with selected officials of banks holding responsible positions. In order to obtain contrasting views, some questionnaires and interview were administered to poor people in Temeke District. According to the findings of this study, it has in fact been revealed that commercial banks in Dar es salaam engage themselves in poverty alleviation activities more or less on charitable basis without an elaborate supportive legislative framework on the same. The conclusion advanced is that, the laissez-faire approach enjoyed by commercial banks in fighting poverty leaves much to be desired in view of the fact that there is no legal obligation imposed upon them. It is finally recommended that since poverty is a serious problem, it can only be effectively dealt with by harnessing vast resources held by commercial banks and financial institutions and providing a more articulate regulatory framework.