BY DIRAMAKINI REPORTER
The Bank of Tanzania conducted a review to establish the main reasons behind high non-performing loans in the banking sector and established that, to a great extent, employees of some banks and financial institutions are directly responsible through issuing loans without following procedures, fraud,/corruption or other practices that are tantamount to lack of integrity.
High rate of non-performing loans is among major causes of high lending rates and may lead to instability of banking sector.
In view of the above the Bank of Tanzania wishes to inform the general public that it has deemed it necessary to take measures listed below in order to address the issue of high non-performing loans in the banking sector;
