Comparative Analysis of Commercial Banks Liquidity Position: The Case of Tanzania

Xuezhi Qin; Pastory, Dickson
May 2012
International Journal of Business & Management;May2012, Vol. 7 Issue 10, p134
Academic Journal
This paper gives an overview picture of commercial banks liquidity position in Tanzania for the period of ten years (2000 to 2009). The study employed the liquidity measures of commercial banks, and on that basis the performance in terms of liquidity position was established. The paper used the casual research design as the methodology of the study since the casual design is best suited to determine cause and effects of the phenomenon. This paper utilizes secondary data from National Bank of Commerce (NBC), CRDB and National Microfinance Bank (NMB). The criteria used is total deposit to core funding, liquid asset to demand liabilities and Gross loans to total deposit Tanzania for the period of ten years, and finally the hypothesis was tested to know whether there is a significant difference in terms of liquidity position by using ANOVA test. The findings revealed that the commercial banks under study have strongest liquidity level although it varied over years and National Microfinance Bank maintained strongest liquid level compared to the other two banks.


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