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Influence of capital adequacy requirement reviews on commercial banks’ financial performance in Tanzania

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dc.contributor.author Majondo, Safari
dc.contributor.author Mataba, Lucas D.
dc.contributor.author Mmari, Goodluck A.
dc.date.accessioned 2023-08-24T08:15:33Z
dc.date.available 2023-08-24T08:15:33Z
dc.date.issued 2023
dc.identifier.citation Majondo, S., Mataba, L. and Mmari, G. (2023). Influence of capital adequacy requirement reviews on commercial banks’ financial performance in Tanzania. East Africa Journal of Social and Applied Sciences, 5(1): 41-52. en_US
dc.identifier.issn 2714-2051
dc.identifier.issn 0856-9681
dc.identifier.uri http://repository.mocu.ac.tz/xmlui/handle/123456789/622
dc.description Full text article from Banking, Accounting and Finance are available at: https://journals.mocu.ac.tz/index.php/eaj-sas en_US
dc.description.abstract Tanzania has undergone various amendments in capital adequacy regulations and policies at various time periods, such as in 1998, 2008, and 2014. However, despite these reviews, some banks have shown good performance while others have collapsed and merged with other strong banks. This study, therefore, aimed at assessing the influence of reviews of capital adequacy requirements on the financial performance of commercial banks in Tanzania. To achieve the main objective, the study specifically intended to analyse the extent to which commercial banks in Tanzania complied with capital adequacy requirements amendments, and compare the effect of capital adequacy requirements reviews on the financial performance of commercial banks in Tanzania before and after regulatory reviews. Panel secondary data were collected for only 24 sampled commercial banks out of 36 targeted banks. Data obtained from the study were descriptively analysed and inferentially using a random effect regression model. Results from the field reveal that, after regulatory amendments on capital requirements in 2014, Tier I, Tier II, GDP, and SIZE were observed to have a higher significant influence on the financial performance (ROE and saving mobilisation) of selected banks in Tanzania as compared to the period before capital requirements reviews. The study concludes that high compliance with capital adequacy requirements helps banks to improve their financial performance. Therefore, the study recommends that banks should further diversify their income sources to ensure that they hold more capital adequacy. en_US
dc.language.iso en en_US
dc.publisher East Africa Journal of Social and Applied Sciences en_US
dc.relation.ispartofseries Vol. 5;1
dc.subject Capital adequacy en_US
dc.subject Return on equity en_US
dc.subject Saving mobilisation en_US
dc.subject Commercial banks en_US
dc.subject Random effect en_US
dc.title Influence of capital adequacy requirement reviews on commercial banks’ financial performance in Tanzania en_US
dc.type Article en_US


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