The Effect of Shifting Capital City from Dar Es Salaam to Dodoma on Financial Performance of Selected Tanzanian Commercial Banks.

Abstract

The study examined the impact of changing the government city from Dar Es Salaam to Dodoma on financial performance drawing reference from selected Tanzanian commercials banks. Through a mixed-research approach coupled with panel data were generated through document reviews and questionnaire survey. A sample size of 80 staffs was drawn from different 10 branches of NMB, CRDB and TPB. The findings show so as to present is a connection between asset qualities and profitability performance before and after shifting the government city from Dar es Salaam to Dodoma Region (P-Value of 0.006). Further, there is direct association between earning capabilities and financial performance with P-Value of 0.004. Likewise, the dissertation found that, there an connection between management efficiency and financial performance (P-Value of 0.008) and there is a connection between liquidity and bank performance (P-Value of 0.003). It is, therefore, done that there is a statistically important connection between the transfer of the government city from Dar Es Salaam to Dodoma Region and bank performance of commercial banks in Tanzania before shifting capital city and after shifting the capital city. The study suggests that the Bank of Tanzania, international financial organisations and policymakers to supervise the operations of commercial banks to increase liquidity, asset quality, management efficiency and earnings capabilities. This may be done by monitoring and mentoring to show good directions to the commercial banks.