Leo Afrikanus
Looking at the new dispensation of Industrial economy in Tanzania as the lieu to Middle Economy, I come to think of Banking in Tanzania. I am questioning myself what is the role of these banks in leading to Middle Economy in Tanzania? What would be the contributions of Banking in nurturing and growing Business in Tanzania. The expanding but not growing small vendors in Tanzania aka Machinga can it be really be the opportunity to the Banks instruments of Credit ( Debt)?

Can banking start thinking of Business psychology as the tool that demand to elevate the small medium businesses to be the biggest clients of their credit business? Things are changing with too much of expanding mobile money but with the need for Industrial growth which I consider Banks to be at forefront to industrial growth stake.

Could we discuss the future of Banking in an Industrial economy, Could we discuss business psychology in regards to the going on political trends to banking. Banking are closing and IMF and World Bank have alerted the 6 more banks to be closed. DoesTIOB see it ok to keep a BASATA role to Banking while Banks are falling?
🐘The problem is not small business, the problem is thinking small in small Business. In-fact it isn't small and Medium Enterprise but rather Medium and Small enterprise➰.
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Godlove
The issue is very wide and there are number of factors that hinders future of banking in the economy such as increase of non-performing loans.
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Leo Afrikanus
Thanks Godlove,
Lets ask ourselves what causes an increase in non-performing loans? Loans are instruments of credit why are they not performing? What would it be the banks going wrong in harnessing these instruments of credit?
🐘The problem is not small business, the problem is thinking small in small Business. In-fact it isn't small and Medium Enterprise but rather Medium and Small enterprise➰.
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Godlove
Banks lack effective measures to identify, quantify and control the regional and industrial risk, is constrained by obtaining historical data, decentralised information systems and immature portfolio management skills. So they have to make judgment mainly based on personal experience and consequently have weak management measures on concentrated and systemic risk. Basically, the non-performing loans are a result of the compromise of the objectivity of credit appraisal and assessment. The problem is aggravated by the weakness in the accounting, disclosure and grant of additional loans.  In the assessment of the status of current loans, the borrower’s credit worthiness and the market value of collateral are not taken into account thereby rendering it difficult to spot a bad loan. Compromise in quality of risk assessment, thus, leads to occurrence of non performing loans.  
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Leo Afrikanus
Godlove,
I thank you for your candid reply and I indeed see your deep knowledge into what is going on with our banks. Not knowing whether you are from TIOB or from banking fraternity. My concerned is that thus knowing that what is our role as professionals and TIOB in reconstructing our Banks?
In my view I think TIOB should gather a forum to candidly discuss on the on going affairs of the Banking industry and come up with the way forward towards making banking more professional, risk averse, more currently operating from really data and thus help banks to be what we are discussing. The forum can be quarterly basis or assemble all professionals by TIOB and Banking cadre to have a genuine discussion on the banking progress. I mighty be discussing under the veil of ignorance but all in all efforts need to be engineered to rescue the banking industry in Tanzania. However we can even design our own banking model different from the early founding basing of Banking in west and global wise. All these to suit the survival of banks in Tanzania and do what is necessary and fundamental for the country. I am ready at no cost to be a focus group discussion but only for the betterment of our country.
If I may humbly submit.
🐘The problem is not small business, the problem is thinking small in small Business. In-fact it isn't small and Medium Enterprise but rather Medium and Small enterprise➰.
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Symon
Tanzania Institute of Bankers is mandated to certify professional Bankers who are competent to drive and nurture the banking sector and developing their skills through training. That is the one of  the significant role of  TIOB for the future of banking and growth of business.

Downs in the banking sector can be traced and noticed at high level since 2016 if my memory serves me right. The major problem for the hardships was due to high non-performing loans that banks experienced. Short term and long term measures were taken to rescue the situation although other banks closed the business as they failed to reveals the strategic plan for raising enough fund to meet adequacy capital requirement.

We are all aware that loans constitute a large income earning asset in financial institutions, hence must be efficiently managed to ensure Banks's survival and growth. Thus, the future of banking and growth of the business is two folded:
1. Banks should develop products that suits customers needs rather than copying what is already in the market. Replication of succeeded products in other markets is not a guarantee for the product successfulness in another segment.
This can help banks to see and exploit opportunities than how currently the situation is. (Product development section should reassess themselves).
2. Credit appraisal. I can notice a conflicting goals to credit officer of meeting loan target and appraising customers. The ratio of rejected loans to accepted loans is lower not by meeting criteria but due to closeness between customer and loan officers which ruins reliability of the appraisal.

Recommendations.
1. Independent report from authorized third party detailing all essential factors of the borrowing business shall assist banks to make a meaningful lending decisions rather than depending on credit officer report. This can reduce non-performing loans.

I humbly submit.
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