Year: 2012
Type: article
Abstract: The study examines commercial banks profitability in Tanzania for the period of ten years (2000-2009).Thestudy used National Microfinance Bank (NMB), National Bank of Commerce (NBC) and CRDB as the casestudy. The study employed the profitability measures of commercial banks, and the evidence of performance interms of profitability was established based on return on average asset, net interest income to average bearingassets and non-interest expenses to average assets. The paper utilized panel secondary data from National bankof commerce, CRDB and National Microfinance bank in Tanzania for the period of ten years, and the hypothesiswas tested to know whether there is a significant difference in terms of profitability by using ANOVA test.Finally the regression model was run to see the effects of capital adequacy, liquidity and asset quality on theprofitability of commercial banks. The findings revealed that there is no significant difference on profitabilityamong the commercial banks, in the context of regression model it has been noted that liquidity and asset qualityhas positive impact in profitability with exception to the level of nonperforming loans which has a negativeinfluence on profitability. Also capital adequacy has shown negative impact on profitability. The studyconfirmed the profitability of commercial banks to stable and meeting the regulatory requirement of the Bank ofTanzania (BOT).
Authors: Xuezhi Qin, Pastory Dickson
Institution: Dalian University of Technology
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W1995102105