The effect of asset and liability management on profitability of commercial banks in Tanzania

Nicodem, Hatunga

dc.creator	Nicodem, Hatunga
dc.date	2021-01-26T06:45:31Z
dc.date	2021-01-26T06:45:31Z
dc.date	2020
dc.date.accessioned	2022-10-20T14:40:06Z
dc.date.available	2022-10-20T14:40:06Z
dc.identifier	Nicodem, H. (2020). The effect of asset and liability management on profitability of commercial banks in Tanzania (masters' dissertation) The University of Dodoma, Dodoma.
dc.identifier	http://hdl.handle.net/20.500.12661/2677
dc.identifier.uri	http://hdl.handle.net/20.500.12661/2677
dc.description	Dissertation (MSc Accounting and Finance)
dc.description	Asset and Liability Management (ALM) becomes an important and critical issue in financial institutions particularly in commercial banks. The uncertainty of returns expected from their assets, risks associated with those assets and the need of liquidity enforces banks to give more attention for their assets and liability composition. Therefore, this study sought to examine the effect of asset and liability management on profitability of commercial banks in Tanzania. Specific objectives of the study were: to assess the effect of capital adequacy, asset quality and liquidity on profitability of the commercial banks in Tanzania. The study adopted a cross sectional research design. The target population was commercial banks listed at Dar es Salaam stock exchange. Secondary data was utilized as the source of data for the study. The data was collected from six listed commercial bank’s audited financial statements covering the period of four years from 2016-2019. Quantitative data were analyzed using descriptive statistics, correlation and multiple linear regression models. The findings from correlation and multiple linear regression coefficients indicated that capital adequacy, asset quality and liquidity management as components of assets liability were statistically significant and positively related to profitability of commercial bank. Therefore, commercial Banks should comply with Bank of Tanzania (BOT) banking rules and regulations to avoid the increasing incidence of nonperforming loans and the regulatory authorities should regularly access the lending behavior on the banking industry. Therefore, the study concludes that capital adequacy, asset quality and liquidity affect profitability of commercial banks in Tanzania. The study recommends that bank embed effective asset and liability management policies to enhance profitability
dc.language	en
dc.publisher	The University of Dodoma
dc.subject	Financial institutions
dc.subject	Commercial banks
dc.subject	Asset and Liability Management
dc.subject	ALM
dc.subject	Capital adequacy
dc.subject	Bank of Tanzania
dc.subject	BOT
dc.subject	Nonperforming loans
dc.subject	Banking industry
dc.title	The effect of asset and liability management on profitability of commercial banks in Tanzania
dc.type	Dissertation