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Empirical Analysis of Efficiency of Community Banks in Tanzania

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dc.contributor.author Mataba, Lucas D.
dc.contributor.author Aikaeli, Jehovaness
dc.date.accessioned 2022-08-19T06:49:17Z
dc.date.available 2022-08-19T06:49:17Z
dc.date.issued 2016
dc.identifier.issn 1916-971X
dc.identifier.uri http://repository.mocu.ac.tz/xmlui/handle/123456789/308
dc.description Banking, Accounting and Finance en_US
dc.description Banking, Accounting and Finance en_US
dc.description.abstract Efficient utilization of resources is critical for effective performance of banks. This paper measured efficiency of community banks in Tanzania and compares performance between two community banks categories during 2002 2014. Efficiency was estimated usi ng Data Envelopment Analysis (DEA) approach while the independent samples t test was applied on means of efficiency to compare performance between the banks categories. The paper establishes that, most community banks were inefficient, suggesting that the re was effect of unnecessary additional costs on the banks performance. Despite the general poor performance, community banks in Tanzania were generally operating at a decreasing part of the average cost curve, which granted an opportunity for expansion an d exploitation of scale economies. The paper further establishes that efficiency of respective categories of community banks did not differ significantly; implying that the bank type did not matter as regards efficiency issue. The policy implications are; community banks should effectively manage their cost structure in order to improve performance, and a separate regulatory framework should be applied to community banks to take care of their uniqueness. en_US
dc.description.abstract Efficient utilization of resources is critical for effective performance of banks. This paper measured efficiency of community banks in Tanzania and compares performance between two community banks categories during 2002 2014. Efficiency was estimated usi ng Data Envelopment Analysis (DEA) approach while the independent samples t test was applied on means of efficiency to compare performance between the banks categories. The paper establishes that, most community banks were inefficient, suggesting that the re was effect of unnecessary additional costs on the banks performance. Despite the general poor performance, community banks in Tanzania were generally operating at a decreasing part of the average cost curve, which granted an opportunity for expansion an d exploitation of scale economies. The paper further establishes that efficiency of respective categories of community banks did not differ significantly; implying that the bank type did not matter as regards efficiency issue. The policy implications are; community banks should effectively manage their cost structure in order to improve performance, and a separate regulatory framework should be applied to community banks to take care of their uniqueness. en_US
dc.language.iso en en_US
dc.publisher International Journal of Economics and Finance en_US
dc.relation.ispartofseries Vol. 8;No. 12
dc.subject Community banks Bank efficiency Data envelopment analysis en_US
dc.subject Community banks Bank efficiency Data envelopment analysis en_US
dc.title Empirical Analysis of Efficiency of Community Banks in Tanzania en_US
dc.type Article en_US


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