- The local banks have continued to expand its share on the industry’s total assets, which indicates the shrinking of foreign owned banks space in Tanzania’s banking industry.
Dar es Salaam. Local banks have continued to increase their market shares on the industry’s total assets, compared with foreign banks.
The Bank of Tanzania (BoT) annual report for 2017 shows that local banks had the market share of 57.43 per cent of Sh27 trillion, higher than 56.36 per cent recorded in 2016.
The market share was 52.75 per cent of Sh22.5 trillion in 2015.
This indicates that the local banks have continued to increase the size of their assets, pushing down the share of foreign banks.
The report shows that the market share of foreign banking assets slowed to 42.57 per cent last year, from 43.64 per cent in 2016.
It was 47.25 per cent in 2015.
In 2017, the banking industry was composed of 58 regulated deposit taking banks and financial institutions.
The regulated entities consisted of 37 commercial banks, 11 community banks, three financial institutions, two development finance institutions and five microfinance banks.
“In 2017, the banking industry remained adequately capitalised and liquid despite challenges of increasing non-performing loans,” commented Kened Nyoni, director, banking supervision at BoT.
Total assets and total capital grew by 6.76 per cent and 8.53 per cent compared with 2.57 per cent and 12.72 per cent, respectively as recorded on December 31, 2016.
He said the ratios of core capital and total capital to total risk weighted assets and off-balance sheet exposures were 18.41 per cent and 20.41 per cent.