#TANZANIA TOTAL LOCKDOWN CODE#

Banks were also required to adhere to the Tanzania Banker’s Association Code of Conduct to, among others, enhance staff integrity. The improvement was attributed to various measures taken by BoT, including requiring banks and financial institutions to enhance credit-underwriting standards and loan recovery efforts. The ratio further declined to 9.3% in December 2020. The ratio of non-performing loans (NPLs) to gross loans decreased to 9.58% from 10.51% in 2018 but was above the desirable level. The average lending rates by banks remained stable with a gradual downward trend over the last two years. The remaining sectors accounted for 24.40% of the loan portfolio. Personal loans accounted for 29.04% of total loans, followed by Trade (16.15%), Building, Construction and Real estates (10.88%), Manufacturing (9.89%), and Agriculture (9.64%). In 2019, the loan portfolio continued to be diversified in various sub-sectors of the economy. Investment in debt securities increased by 4.04% compared to a decline of 10.52% recorded in 2018. The decrease was associated with portfolio shift to more profitable investments such as loans, advances, and overdrafts. The observed growth was attributed to a favorable macroeconomic environment, BoT’s sustained accommodative monetary policy, and other regulatory measures taken to support the private sector’s credit growth.īalances with other banks, cash, and items for clearing decreased by 3.43% in 2019 compared to 0.21% recorded in 2018. Deposits increased by 7.16% to TZS 23,818.11 billion. Loans, advances, and overdrafts recorded a growth rate of 10.42% to reach TZS 17,884.03 billion in 2019 compared to a growth of 6.83% registered in 2018.

Loans, advances, and overdrafts accounted for 53.93% of total assets, while deposits accounted for 84.66% of total liabilities in 2019. The ratio of earning assets to total assets remained broadly unchanged at around 80%, indicating that a significant part of the sector’s assets continued to be channeled to productive sectors of the economy In the same year, earning assets recorded an increase of 9.32% to TZS 26,435 billion, implying the improved ability of the sector to generate income from operations. The sector’s total assets grew by 9.15% to TZS 33,161.80 billion in 2019, mainly financed by an increase in deposits, borrowings, and retained earnings. The ratio of gross loans to total deposits increased to 88.24% in December 2019 from 85.07% reported in 2018, indicating that deposits remained the main source of funding.

The banking sector continued to maintain adequate liquidity levels well above the minimum regulatory requirement of 20% the amount was sufficient to meet maturing obligations and fund growth in assets.ĭuring 2019, the ratio of liquid assets to demand liabilities stood at 32.14% compared to 35.22% in 2018 and was attributed to a change in portfolio mix in favor of loans, advances, and overdrafts. The measure was taken to enable banks and financial institutions to play a more active role in the provision of credit to the private sector. The decrease in the total capital adequacy ratio is ascribed to regulatory measures to remove the one percent general provision requirement on unclassified loans. The increase in the core capital adequacy ratio is partly explained by retention of profit and additional capital injection. Both ratios were above the minimum legal requirements of 10% and 12% for core and total capital, respectively. Core and total capital adequacy ratios stood at 17.04% and 18.06% compared to 16.20% and 18.14% in 2018, respectively. In 2019, the sector remained adequately capitalized. The sector recorded a record profit before tax of TZS 590 billion in 2019, compared to TZS 313 billion in 2018 (+88%). The increase in profitability was driven by an increase in interest income consistent with growth in the loan portfolio, and a decrease in interest expenses. Banking Sector Earningsĭuring 2019, the sector remained profitable as depicted by Return on Assets (ROA) and Return on Equity (ROE) ratios, which increased to 1.86% and 7.13% from 1.04% and 2.88% in 2018, respectively. Tanzania Banking Sector Outlook: Covid-19 and Economic GrowthĪccording to the latest Financial Sector Supervision Annual Report of the Bank of Tanzania (BoT), in 2019 the Tanzanian banking sector grew in terms of assets, loans, deposits, and profits compared to 2018.

Financial Inclusion: Microfinance, Agency Banking, Mobile Money, Credit and Forex Bureaus.

Tanzania total lockdown