Evaluating the Efficiency and Sustainability of Domestic and Foreign Banks in Tanzania: Insights From the Digital Transformation Era

Business Strategy & Development, Journal Year: 2025, Volume and Issue: 8(2)

Published: April 10, 2025

ABSTRACT This study examines the efficiency and sustainability of domestic foreign banks in Tanzania from 2014 to 2023. Employing Data Envelopment Analysis (DEA) with bootstrapped DEA for assessment fractional logit regression identify key determinants, provides a robust empirical evaluation banking performance. The findings reveal that demonstrate higher levels than banks, mean CCR BCC scores 92.2% 93.6%, respectively, compared 80.7% 85.4% banks. Bootstrapped results indicate traditional marginally overestimates levels, yet maintain superior performance even after bias correction. Mann–Whitney U test confirms statistically significant differences ( p < 0.05), supporting hypothesis operate more efficiently. Fractional further bank size, capital adequacy, digital adoption positively influence efficiency, whereas asset quality operational costs exert negative impact. contributes resource‐based theory, X‐efficiency theory technological diffusion by demonstrating how transformation enhances sustainability. From practical perspective, offer valuable insights policymakers, regulators, institutions on optimizing strategies improve long‐term By integrating rigor theoretical depth, this comprehensive framework assessing developing economies amid transformation.

Language: Английский

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A Study of the Effect of the Treasury Single Account on Commercial Banks Deposits and Lending in Zambia

Journal of Economics Finance and Management Studies, Journal Year: 2024, Volume and Issue: 07(05)

Published: May 8, 2024

The implementation of the Treasury Single Account (TSA) in Zambia brought about drastic changes management public funds. Bank assumed custodianship funds while Commercial Banks remain revenue collection agents throughout country. This study investigated effect TSA on Deposit Mobilization and Lending Zambia. Secondary Time series data were collected from (BOZ) annual reports covering pre- post-TSA eras, over a ten-year period (2010-2019). independent variable was represented by Government Deposits (representing TSA), aggregate Loans Advances dependent variables. analysed using descriptive, regression correlation analysis, with aid IBM SPSS Statistics version 28. findings revealed that have significant positive [(P-value 0.001; (CI: 95%)]. also trend analysis further slow growth after compared to pre-TSA period. slower during post –TSA era. therefore concluded which aims withdraw has negative their lending ability. recommended banks should develop strategies attract private sector deposits, fill void created TSA. come up innovative solutions tap into unbanked population. It is important attractive savings products encourage culture saving among citizens. Ministry Finance consider allowing involved collection, few days float before remitted main account at (BOZ).

Language: Английский

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EFFECTS OF FINANCIAL MARKET DEVELOPMENT ON BANK CAPITALIZATION RATIO: EVIDENCE FROM COMMERCIAL AND NON-COMMERCIAL BANKS IN TANZANIA

International journal of business management and economic review, Journal Year: 2024, Volume and Issue: 07(02), P. 55 - 75

Published: Jan. 1, 2024

Financial market development in many developing countries is a series of financial reforms aimed at improving the and system general. Theoretically, major that improve stock are expected to increase bank performance by reducing risk default increasing capitalization ratio. This results stability banking sector. Nonetheless, empirical literature addition shows quality may be high following process because integration effects markets across or regions. A good example this global crisis 2007/2008. Based on background, present study investigates extent which Tanzania influences bank's ratio (commercial non-commercial banks). Employing two-step GMM technique dynamic panel dataset regression model for investigation period 2012 2021, while macroeconomic bank-specific variables have been used as control variables. We proxy development. finds measured terms turnover improves with goals enhancing maintaining

Language: Английский

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Examining Performance Determinants of Commercial Banks: Evidence from the Tanzanian Banking Sector

European Scientific Journal ESJ, Journal Year: 2024, Volume and Issue: 20(13), P. 19 - 19

Published: May 31, 2024

While the current body of literature offers valuable insights into factors influencing bank financial performance, there remains a significant paucity empirical research focusing on least developed nations. In this paper, we present new evidence effect size, capital adequacy ratio (CAR), and net interest margin (NIM) commercial banks' performance (return assets (ROA)) from perspective Tanzania – least-developed country. We employed Random Effect, Generalized Least Squares (GLS) regression models utilizing panel dataset spanning period 2000 to 2022 ten (10) Tanzanian banks examine specific foregoing variables banks’ profitability. These have combined share approximately 85 percent total (TZS 46 trillion) banking sector. found that size positive effects in Tanzania. Whereas random model shows marginally ROA, GLS negative effect, indicating NIM could be either or depending context. Thus, intimate regulators prioritize measures aimed at promoting healthy levels encouraging growth larger while ensuring adequate oversight mitigate potential risks associated with market dominance, regulatory frameworks should designed foster competition efficiency sector, facilitating conducive environment for all sizes thrive.

Language: Английский

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