Effect of Treasury Single Account (TSA) on the Financial Performance of Commercial Banks in Tanzania: AStudyBased on CAMEL Rating Analysis.

Abstract

This paper analyses the effect of the treasury single account (TSA) on the financial performance of commercial banks in Tanzania over the period 2015-2020. The selected commercial banks include NMB Plc, CRDB Plc, EXIM Bank, NBC and DCB in Tanzania’s banking sector. The study employs a descriptive research design and the CAMEL Rating Analysis approach. The findings show that all the selected commercial banks have maintained a strong position on their composite rating system before and after the TSA implementation. They are sound in the aspects of capital adequacy, management quality, earning capacity and liquidity conditions.