Summary: Tanzania’s financial system, like those in most low-income countries, is dominated by banks. Financial markets, on the whole, are shallow and less developed though a few key markets (the interbank and foreign exchange markets) exhibit relatively greater liquidity and depth. Banks are generally well-capitalized and profitable. However, there is wide variation within the system: several mainly large banks have shown strong financial performance but other banks, primarily smaller foreign-owned banks and community banks, exhibit low profitability and poor asset quality. State-owned banks also have relatively high non-performing loan ratios. Where Tanzania stands out is in the sheer number of banks (57), which taken together with the poor performance of a number of these institutions, raises the question of whether some consolidation in the sector is warranted.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.