United Republic of Tanzania: Financial System Stability Assessment-Press Release; Staff Report; and Statement by the Executive Director for the United Republic of Tanzania
IMF Staff Country Reports, December 4, 2018
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- United Republic of Tanzania: Financial System Stability Assessment-Press Release; Staff Report; and Statement by the Executive Director for the United Republic of Tanzania
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Bibliographic details
- Published: December 4, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484387597.002
Financial system structure and market concentration
- Tanzania’s financial sector is bank-dominated, small, concentrated, and at a relatively nascent stage of development.
- Financial services provision is dominated by commercial banks.
- The ten largest institutions are preeminent in mobilizing savings and intermediating credit.
- Medium-to-small banks:
- Rely systematically more on costlier, short-term, interbank financing and institutional deposits.
- Have markedly higher operating costs.
Financial stability challenges and vulnerabilities
- Structural features underpin significant financial stability challenges.
- Bank asset quality has deteriorated sharply in recent years.
- Under-provisioning is significant, belying the apparently comfortable capital cushions.
- Credit growth has fallen precipitously.
- Corporate debt loads have risen, and corporate cash flows are weak.
- Dollarization of bank balance-sheets raises the possibility that solvency stress under shocks could be exacerbated by funding liquidity pressures, especially at smaller banks.
Subject areas and keywords covered
- Subjects: Banking; Commercial banks; Financial institutions; Financial Sector Assessment Program; Financial sector policy and analysis; Financial sector stability; Foreign exchange; International trade; Nonperforming loans; Trade balance
- Keywords: bank asset quality; CR; Financial Sector Assessment Program; Financial sector stability; FSAP reform agenda; Global; ISCR; Nonperforming loans; problem bank oversight; repo market development; Tanzanian bank; Trade balance
Publication and document metadata
- Pages: 80
- Volume: 2018
- Issue: 346
- Series: Country Report No. 2018/346
- DOI: https://doi.org/10.5089/9781484387597.002
- Stock No: 1TZAEA2018002
- ISBN: 9781484387597
- ISSN: 1934-7685
International Monetary Fund. Monetary and Capital Markets Department "United Republic of Tanzania: Financial System Stability Assessment-Press Release; Staff Report; and Statement by the Executive Director for the United Republic of Tanzania", IMF Staff Country Reports 2018, 346 (2018), accessed 8/19/2026, https://doi.org/10.5089/9781484387597.002
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- Country Report