Papers by Dr. Mwakajumilo Laurent Isaac Stephen
Tel: +255 25 250 3321/4 Mob: +255 (0) 754 276 491; (0) 787 032 764 Fax: +255 25 250 2844
Financial development is playing an important role in Tanzania’s economic progress. Financial fai... more Financial development is playing an important role in Tanzania’s economic progress. Financial failures, particularly insufficient institutions and high transactions costs limit poor people’s access to formal finance and prevent low income of people from borrowing, and saving. In this essay the importance of mobilizing savings through providing low-income to people from financial services in Tanzania is emphasized.
Last decade of microfinance practice, particularly in Tanzania, has neglected rural finance. Support to the sector has concentrated on turning credit progammes into suitable microfinance institutions (MFIs). This emphasis has produced a small number of MFIs that have either achieved financial sustainability or are close to achieving this. In Tanzania this includes organizations such as SELF, PRIDE, MEDA.
SACCOs, Savings and Credit Cooperative Societies as an alternative to formal banks are discussed as a way to increase savings. Furthermore, SACCOs –Members preferences are studied.
Developing and improving occupational SACCOs, saving and credit cooperatives, can be effective alternative to formal banks. The safety-issue is the basic problem, where education plays an important role to improve security. With improvements SACCOs could in the long run function as a way to connect informal savings with the formal financial sector.
Finally, it is imperative for the formulation of an appropriate MFIs policy which should reflect the views and aspirations of MFIs and also aim at improving business culture, promote trust, transparency, accountability and good governance, considered as hallmarks for building a strong MFIs sector.
The aim of the study is to assess the impact of non-performing assets on the growth of banking
in... more The aim of the study is to assess the impact of non-performing assets on the growth of banking
industry in Tanzania specifically NMB Bank. The objectives of the study accessed the impact of
non-performing assets on growth of banking industry, analyzed the causes for non-performing
assets in banks. Furthermore it explored and identified specific steps that bank officers have to
deal with the problems. The findings revealed that the impact of non-performing assets facilitated
by non-recovery of loans, hence caused great harm to the economic framework and structure, loss
of trust of dishonest, reduced customer ability in buying, legal issues, lack of aggressive credit
collection policy, poor credit assessment. Moreover specific steps taken by bank managers to
avoid drastic downfall and the recovery of crisis with meaningful suggestions for financial
stability. The study recommended that the bank management have to provide enough education
on loan management to their clients as well as their workers. The banks also have to ensure that
sufficient and quality staffs are trained. The management of the bank has to review its credit
management policy in order to improve the quality of assets. The creation of manageable lending
behavior should be managed properly with the regular check of the value and other legal status
The aim of the study is to assess the impact of non-performing assets on the growth of banking
in... more The aim of the study is to assess the impact of non-performing assets on the growth of banking
industry in Tanzania specifically NMB Bank. The objectives of the study accessed the impact of
non-performing assets on growth of banking industry, analyzed the causes for non-performing
assets in banks. Furthermore it explored and identified specific steps that bank officers have to
deal with the problems. The findings revealed that the impact of non-performing assets facilitated
by non-recovery of loans, hence caused great harm to the economic framework and structure, loss
of trust of dishonest, reduced customer ability in buying, legal issues, lack of aggressive credit
collection policy, poor credit assessment. Moreover specific steps taken by bank managers to
avoid drastic downfall and the recovery of crisis with meaningful suggestions for financial
stability. The study recommended that the bank management have to provide enough education
on loan management to their clients as well as their workers. The banks also have to ensure that
sufficient and quality staffs are trained. The management of the bank has to review its credit
management policy in order to improve the quality of assets. The creation of manageable lending
behavior should be managed properly with the regular check of the value and other legal status.
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Papers by Dr. Mwakajumilo Laurent Isaac Stephen
Last decade of microfinance practice, particularly in Tanzania, has neglected rural finance. Support to the sector has concentrated on turning credit progammes into suitable microfinance institutions (MFIs). This emphasis has produced a small number of MFIs that have either achieved financial sustainability or are close to achieving this. In Tanzania this includes organizations such as SELF, PRIDE, MEDA.
SACCOs, Savings and Credit Cooperative Societies as an alternative to formal banks are discussed as a way to increase savings. Furthermore, SACCOs –Members preferences are studied.
Developing and improving occupational SACCOs, saving and credit cooperatives, can be effective alternative to formal banks. The safety-issue is the basic problem, where education plays an important role to improve security. With improvements SACCOs could in the long run function as a way to connect informal savings with the formal financial sector.
Finally, it is imperative for the formulation of an appropriate MFIs policy which should reflect the views and aspirations of MFIs and also aim at improving business culture, promote trust, transparency, accountability and good governance, considered as hallmarks for building a strong MFIs sector.
industry in Tanzania specifically NMB Bank. The objectives of the study accessed the impact of
non-performing assets on growth of banking industry, analyzed the causes for non-performing
assets in banks. Furthermore it explored and identified specific steps that bank officers have to
deal with the problems. The findings revealed that the impact of non-performing assets facilitated
by non-recovery of loans, hence caused great harm to the economic framework and structure, loss
of trust of dishonest, reduced customer ability in buying, legal issues, lack of aggressive credit
collection policy, poor credit assessment. Moreover specific steps taken by bank managers to
avoid drastic downfall and the recovery of crisis with meaningful suggestions for financial
stability. The study recommended that the bank management have to provide enough education
on loan management to their clients as well as their workers. The banks also have to ensure that
sufficient and quality staffs are trained. The management of the bank has to review its credit
management policy in order to improve the quality of assets. The creation of manageable lending
behavior should be managed properly with the regular check of the value and other legal status
industry in Tanzania specifically NMB Bank. The objectives of the study accessed the impact of
non-performing assets on growth of banking industry, analyzed the causes for non-performing
assets in banks. Furthermore it explored and identified specific steps that bank officers have to
deal with the problems. The findings revealed that the impact of non-performing assets facilitated
by non-recovery of loans, hence caused great harm to the economic framework and structure, loss
of trust of dishonest, reduced customer ability in buying, legal issues, lack of aggressive credit
collection policy, poor credit assessment. Moreover specific steps taken by bank managers to
avoid drastic downfall and the recovery of crisis with meaningful suggestions for financial
stability. The study recommended that the bank management have to provide enough education
on loan management to their clients as well as their workers. The banks also have to ensure that
sufficient and quality staffs are trained. The management of the bank has to review its credit
management policy in order to improve the quality of assets. The creation of manageable lending
behavior should be managed properly with the regular check of the value and other legal status.
Last decade of microfinance practice, particularly in Tanzania, has neglected rural finance. Support to the sector has concentrated on turning credit progammes into suitable microfinance institutions (MFIs). This emphasis has produced a small number of MFIs that have either achieved financial sustainability or are close to achieving this. In Tanzania this includes organizations such as SELF, PRIDE, MEDA.
SACCOs, Savings and Credit Cooperative Societies as an alternative to formal banks are discussed as a way to increase savings. Furthermore, SACCOs –Members preferences are studied.
Developing and improving occupational SACCOs, saving and credit cooperatives, can be effective alternative to formal banks. The safety-issue is the basic problem, where education plays an important role to improve security. With improvements SACCOs could in the long run function as a way to connect informal savings with the formal financial sector.
Finally, it is imperative for the formulation of an appropriate MFIs policy which should reflect the views and aspirations of MFIs and also aim at improving business culture, promote trust, transparency, accountability and good governance, considered as hallmarks for building a strong MFIs sector.
industry in Tanzania specifically NMB Bank. The objectives of the study accessed the impact of
non-performing assets on growth of banking industry, analyzed the causes for non-performing
assets in banks. Furthermore it explored and identified specific steps that bank officers have to
deal with the problems. The findings revealed that the impact of non-performing assets facilitated
by non-recovery of loans, hence caused great harm to the economic framework and structure, loss
of trust of dishonest, reduced customer ability in buying, legal issues, lack of aggressive credit
collection policy, poor credit assessment. Moreover specific steps taken by bank managers to
avoid drastic downfall and the recovery of crisis with meaningful suggestions for financial
stability. The study recommended that the bank management have to provide enough education
on loan management to their clients as well as their workers. The banks also have to ensure that
sufficient and quality staffs are trained. The management of the bank has to review its credit
management policy in order to improve the quality of assets. The creation of manageable lending
behavior should be managed properly with the regular check of the value and other legal status
industry in Tanzania specifically NMB Bank. The objectives of the study accessed the impact of
non-performing assets on growth of banking industry, analyzed the causes for non-performing
assets in banks. Furthermore it explored and identified specific steps that bank officers have to
deal with the problems. The findings revealed that the impact of non-performing assets facilitated
by non-recovery of loans, hence caused great harm to the economic framework and structure, loss
of trust of dishonest, reduced customer ability in buying, legal issues, lack of aggressive credit
collection policy, poor credit assessment. Moreover specific steps taken by bank managers to
avoid drastic downfall and the recovery of crisis with meaningful suggestions for financial
stability. The study recommended that the bank management have to provide enough education
on loan management to their clients as well as their workers. The banks also have to ensure that
sufficient and quality staffs are trained. The management of the bank has to review its credit
management policy in order to improve the quality of assets. The creation of manageable lending
behavior should be managed properly with the regular check of the value and other legal status.