Pursuing Efficiency While Maintaining Outreach: Bank Privatization in Tanzania

Profitability improvements after the privatization of a large state-owned bank might come at the expense of reduced access to financial services for some groups, especially the rural poor. The privatization of Tanzania's National Bank of Commerce provides a unique episode for studying this issu...

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Main Authors:	Cull, Robert, Spreng, Connor P.
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Comparison of Public and Private Enterprises and Nonprofit Institutions Privatization Contracting Out L330 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170
Online Access:	http://hdl.handle.net/10986/5559

id	okr-10986-5559
recordtype	oai_dc
spelling	okr-10986-55592021-04-23T14:02:22Z Pursuing Efficiency While Maintaining Outreach: Bank Privatization in Tanzania Cull, Robert Spreng, Connor P. Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Comparison of Public and Private Enterprises and Nonprofit Institutions Privatization Contracting Out L330 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Profitability improvements after the privatization of a large state-owned bank might come at the expense of reduced access to financial services for some groups, especially the rural poor. The privatization of Tanzania's National Bank of Commerce provides a unique episode for studying this issue. The bank was split into the "new" National Bank of Commerce, a commercial bank that assumed most of the original bank's assets and liabilities, and the National Microfinance Bank, which assumed most of the branch network and the mandate to foster access to financial services. The new National Bank of Commerce's profitability and portfolio quality improved although credit growth was slow, in line with the privatization experiences in other developing countries. Finding a buyer for the National Microfinance Bank proved very difficult, although after years under contract management by private banking consultants, Rabobank of the Netherlands emerged as a purchaser. Profitability has since improved and lending has slowly grown, while the share of non-performing loans remains low. 2012-03-30T07:33:25Z 2012-03-30T07:33:25Z 2011 Journal Article Journal of Development Economics 03043878 http://hdl.handle.net/10986/5559 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Tanzania
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Comparison of Public and Private Enterprises and Nonprofit Institutions Privatization Contracting Out L330 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170
spellingShingle	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Comparison of Public and Private Enterprises and Nonprofit Institutions Privatization Contracting Out L330 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Cull, Robert Spreng, Connor P. Pursuing Efficiency While Maintaining Outreach: Bank Privatization in Tanzania
geographic_facet	Tanzania
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Profitability improvements after the privatization of a large state-owned bank might come at the expense of reduced access to financial services for some groups, especially the rural poor. The privatization of Tanzania's National Bank of Commerce provides a unique episode for studying this issue. The bank was split into the "new" National Bank of Commerce, a commercial bank that assumed most of the original bank's assets and liabilities, and the National Microfinance Bank, which assumed most of the branch network and the mandate to foster access to financial services. The new National Bank of Commerce's profitability and portfolio quality improved although credit growth was slow, in line with the privatization experiences in other developing countries. Finding a buyer for the National Microfinance Bank proved very difficult, although after years under contract management by private banking consultants, Rabobank of the Netherlands emerged as a purchaser. Profitability has since improved and lending has slowly grown, while the share of non-performing loans remains low.
format	Journal Article
author	Cull, Robert Spreng, Connor P.
author_facet	Cull, Robert Spreng, Connor P.
author_sort	Cull, Robert
title	Pursuing Efficiency While Maintaining Outreach: Bank Privatization in Tanzania
title_short	Pursuing Efficiency While Maintaining Outreach: Bank Privatization in Tanzania
title_full	Pursuing Efficiency While Maintaining Outreach: Bank Privatization in Tanzania
title_fullStr	Pursuing Efficiency While Maintaining Outreach: Bank Privatization in Tanzania
title_full_unstemmed	Pursuing Efficiency While Maintaining Outreach: Bank Privatization in Tanzania
title_sort	pursuing efficiency while maintaining outreach: bank privatization in tanzania
publishDate	2012
url	http://hdl.handle.net/10986/5559
_version_	1764395480510365696

Pursuing Efficiency While Maintaining Outreach: Bank Privatization in Tanzania

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