{"id":36172,"date":"2021-09-09T03:39:00","date_gmt":"2021-09-09T03:39:00","guid":{"rendered":"https:\/\/www.africa-press.net\/tanzania\/?p=36172"},"modified":"2021-09-08T12:56:48","modified_gmt":"2021-09-08T12:56:48","slug":"banks-assets-growth-outpaces-gdp","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/tanzania\/all-news\/banks-assets-growth-outpaces-gdp","title":{"rendered":"Banks assets growth outpaces GDP"},"content":{"rendered":"

Africa-Press<\/a> – Tanzania<\/a>. <\/strong><\/span>THE banks\u2019 assets have grown faster than the country\u2019s GDP signifying that the sector is playing a lead role in economic growth.<\/p>\n

The banks\u2019 assets grew by 5.54 per cent last year which was faster than the GDP growth of 4.7 per cent.<\/p>\n

Tanzania Securities report on Tanzania Banking sector review 2020 showed that the sector experienced good performance last year despite the tremendous economic impact of the Covid-19 pandemic.<\/p>\n

\u201cThis is evidenced by growing profitability, improved liquidity, and increased lending to the private sector,\u201d the report issued yesterday said.<\/p>\n

The report also showed that the asset growth was coupled with the growth in loan book by 6.52 per cent while asset quality continued to improve to see nonperforming loans (NPL) ratio declined to 7.73per cent from 8.04 per cent recorded in 2019.<\/p>\n

\u201cThe Bank of Tanzania (BoT) policy to cushion the impact of Covid-19 possibly led to decrease in NPL\u2019s as a result of loan structuring and continued business operations in all sectors,\u201d Tanzania Securities said in the report that analysed all banks minus TIB Development, Tanzania Agriculture Development Bank (TADB) and Habib due to lack of data and also non-bank institutions.<\/p>\n

The report showed that despite the impact of Covid-19 which led to dimmed-in economic activities which elicited credit to the private sector, and higher interest rates due to the risk of lending to businesses, the banking sector remained vibrant and sound.<\/p>\n

Though, some of the analysts had it that the banking sector growing faster than GDP is a good sign but always that comes with risks.<\/p>\n

An economist-cum-investment banker, Dr Hildebrand Shayo, told \u2018Daily News\u2019 said that the most successful economics tend to be ones that established sophisticated financial systems at an early stage.<\/p>\n

\u201cFinancial sector growth can play either a leading role in economic growth or it may take a more passive role, for instance, derived demand in response to expanding economics needs,\u201d Dr Shayo said.<\/p>\n

The banking sector is linked to GDP in a causal connection between changes in a country\u2019s financial sector growth and its connection to economic growth and is all the time sensitive to the country\u2019s stage of economic growth.<\/p>\n

\u201cThus, the more efficient the financial sector becomes, the more likely a country\u2019s scarce resources can be turned to their most productive use,\u201d Dr Shayo said.<\/p>\n

However, it is important to take caution at some point in the economic growth as increased lead to higher income and education levels, which in turn generates greater demands for more sophisticated financial and risk management services.<\/p>\n

\u201cThe banking growth and stock market growth will certainly not only impact future economic growth but further capital formation and boosts productivity,\u201d the economist said.<\/p>\n

Tanzania Securities report said the adoption of digital banking services within the Tanzanian banking sector has significantly impacted the banking sector by improving employee productivity, enhancing efficiency, and fostering the rise of inconvenient ways of banking through internet and mobile banking facilities.<\/p>\n

At the end of the last year, the assets of large banks stood at 25.66tri\/-, medium banks at 5.71tri\/- and small banks at 1.698tri\/- those of regional and community banks at 1.04tri\/-.<\/p>\n

The whole sector assets size closed at 34.21tri\/- up from 32.41tri\/- in 2019. While total customers deposits stood at 22.44tri\/- also up from 22.26tri\/- and loan and advances stood at 18.53tri\/- from 17.4tri\/-.<\/p>\n

The banking sector under review consists of 43 banks and financial institutions were 10 large, 12 medium, 15 small, two development financial institutions and four regional community banks. Of the total banks in the sector, only 6 of them are listed.<\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Tanzania. THE banks\u2019 assets have grown faster than the country\u2019s GDP signifying that the sector is playing a lead role in economic growth. The banks\u2019 assets grew by 5.54 per cent last year which was faster than the GDP growth of 4.7 per cent. Tanzania Securities report on Tanzania Banking sector review 2020 […]<\/p>\n","protected":false},"author":84,"featured_media":36171,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[6990,6991,711],"class_list":["post-36172","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press-2","tag-africa-press-tanzania","tag-tanzania"],"yoast_head":"\nBanks assets growth outpaces GDP - Tanzania<\/title>\n<meta name=\"description\" content=\"THE banks\u2019 assets have grown faster than the country\u2019s GDP signifying that the sector is playing a lead role in economic ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/tanzania\/all-news\/banks-assets-growth-outpaces-gdp\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Banks assets growth outpaces GDP\" \/>\n<meta property=\"og:description\" content=\"THE banks\u2019 assets have grown faster than the country\u2019s GDP signifying that the sector is playing a lead role in economic ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/tanzania\/all-news\/banks-assets-growth-outpaces-gdp\" \/>\n<meta property=\"og:site_name\" content=\"Tanzania\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-09T03:39:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/tanzania\/sites\/17\/2021\/09\/img-6138b2ea8c2ca.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"1532\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/banks-assets-growth-outpaces-gdp#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/banks-assets-growth-outpaces-gdp\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Banks assets growth outpaces GDP\",\"datePublished\":\"2021-09-09T03:39:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/banks-assets-growth-outpaces-gdp\"},\"wordCount\":605,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/banks-assets-growth-outpaces-gdp#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/tanzania\/sites\/17\/2021\/09\/img-6138b2ea8c2ca.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Tanzania\",\"tanzania\"],\"articleSection\":[\"all news\",\"Economy\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/tanzania\/all-news\/banks-assets-growth-outpaces-gdp#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/banks-assets-growth-outpaces-gdp\",\"url\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/banks-assets-growth-outpaces-gdp\",\"name\":\"Banks assets growth outpaces GDP - 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