Factors affecting savings mobilisation by the financial superstructure in Tanzania.

This study tries to investigate factors affecting savings mobilisation by the financial superstructure in Tanzania during 1967-1984 period. Specifically the effect of financial regulations, financial development policies, interest rates payable on savings deposits, inefficiency and safety of funds have been investigated in this study. The basic argument in this study is that given these factors, the level of savings mobilised by the financial superstructure is not optimal due to the fact that these factors affect its optimal growth. Several hypotheses have been formulated to test the validity of this argument. Methods of analysis employed by this study include both qualitative and quantitative approaches; descriptive statistics and econometric techniques have been used. The econometric analysis employed both multiple and simple regressions. The econometric models estimated somehow validated our hypotheses. The findings indicated that the growth of financial savings in Tanzania is adversely affected by unconducive financial regulations, structure of the rate of interest payable on savings deposits, forgeries, inefficiency, financial development policies and inflation. However, since it is certainly true that the level of savings mobilised by the financial superstructure is sub-optimal, the study recommends that the government and the financial superstructure should design ways that can encourage savings to rise to their optimal level.