Abstract:
This study systematically examines the implications of implementing the Treasury
Single Account (TSA) on Tanzanian banks, focusing on profitability, efficiency, and
stability. Through regression analysis, the first objective reveals a notable adverse
effect of TSA on Return on Assets (ROA) and Return on Equity (ROE), indicating the
extensive impact of increased scrutiny of public funds. The second objective uncovers
statistically significant adverse effects on bank efficiency, particularly related to non-performing loans (NPLs), emphasizing the need for enhanced NPL management and
technological adoption. The third objective highlights decreased stability post-TSA,
with a significant negative impact on the loan loss provision to equity ratio. The study
employed a descriptive research approach, influenced by literature, and utilized
purposive and random sampling of 35 Tanzanian banks. Data collection involved a
methodical examination of relevant documents, and quantitative techniques, including
Difference-in-Differences (DID) regression models, were used for analysis. The results
emphasize the substantial adverse impact of TSA on the stability, profitability, and
efficiency of Tanzanian banks, calling for strategic initiatives in operational efficiency,
revenue diversification, regulatory engagement, proactive risk management, and
ongoing research to navigate financial market dynamics
