Contribution of Evangelical Lutheran Church-Northen Diocese on the performance of community banks in Tanzania

Abstract

This study assessed the contribution of Evangelical Lutheran Church-Northern Diocese in Tanzania on the financial performance of Uchumi Commercial Bank. A specific focus was on how church-owned savings, loans and share capital affect community bank performance. Panel regression data analysis collected between 2016 and 2022 were employed. Bank performance measured in return on assets and return on capital (ROA & ROE respectively), Loan to Deposit Ratio (LDR) and share capital (SC). The findings show that the frequency of savings and loans provided to parishes, loan repayments and number of shares owned by parishes significantly influenced bank’s financial performance (p>0.05). The study recommends that Uchumi Commercial Bank should continue influencing non-church members’ to become members hence increasing the performance of the bank in terms of shares, capital and membership.