The banking sector in Tanzania has been booming, growing in assets and in profits Because of this, new merchant banks, commercial banks, bureau de change, insurance companies, a stock exchange and related financial units, have entered the market. There are four categories of banks, oriented towards different markets and clientele operating in Tanzania: local private banks, regional banks, international banks and multinational banks.
The banking system in Tanzania (which dominates the financial system) is liquid and resilient to most of the shocks. Despite some indications of progress resulting from the reforms, the system falls short of what is needed to support economic growth. This results in high interest rates on loans, currently 12% to 20%, while the interest rates on deposits are at 2%.
- Establishment of fully fledged Commercial Banks.
- Establishment of Development Financial Institution
- Establishment of Community Banks
- Establishment of Microfinance Banks
- Establishment of Financial Leasing Companies.