A Research Report Submitted to Mzumbe University – Mbeya Campus College in Partial Fulfillment of the Requirements for Award of the Bachelor Degree of Accounting and Finance in Business Sector (BAF-BS) of Mzumbe University
This research was carried out at CRDB Bank Plc with the aim of exploring the contribution of the commercial banks to the economic development of Tanzania. The specific objectives of the study were to determine how commercial bank functions helps in development of Tanzania economy, to determine interlink between the bank sectors and economic growth and to examine the obstacles that are frequently faced by commercial banks.
The research used case study research design and methods used in data collection were observation, questionnaire and documentation. Collected data were analyzed using Statistical Package for Social Sciences (SPSS) for Quantitative data, data presentation was based on tables, percentages and figures.
The outcomes of the findings show that banking sectors has a positive and huge relationship with development of a nation, mirroring the ability of funding of public and private projects through credits. A portion of conclusion were made; (i) there are persuading thoughts that commercial banks assumes a key function in smoothing economic development and these viewpoint are strengthened by overpowering observational proof from nation explicit examinations; (ii) while expanding the entrance to back by microenterprises, little and medium-sized enterprises (SMEs), entrepreneurs and vulnerable gatherings is perceived as fundamentally significant for poverty decrease, it is likewise broadly accepted that microfinance and SME credit programs should be all around planned and focused towards these group to be effective. Specifically, these projects should be joined by other help administrations, for example, arrangement of trainings and capacity building, help with getting to business sectors and advancements, and tending to other market disasters. (iii) Big projects made by government some are financed by commercial banks.
The study recommends that these determinations give a tough explanation to regulatory bodies to target financial intermediary especially commercial banks as an essential zone, and that, similar to any open sector intercession, such help would be designed intended to address showcase and other market disasters.