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Effect of treasury single account (TSA) on the financial performance of commercial banks in Tanzania: A study based on CAMEL rating analysis

Author

Listed:
  • Silim Arafa

    (Department of Accounting, College of Business Education, Box 1968 Dar es salaam, Tanznaia)

  • Pastory Dickson

    (Department of Accounting, College of Business Education, Box 1968 Dar es salaam, Tanznaia)

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. Key Words:CAMEL Rating Analysis, capital adequacy, management quality, earning capacity, liquidity and commercial bank.

Suggested Citation

  • Silim Arafa & Pastory Dickson, 2022. "Effect of treasury single account (TSA) on the financial performance of commercial banks in Tanzania: A study based on CAMEL rating analysis," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 172-182, March.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:2:p:172-182
    DOI: 10.20525/ijrbs.v11i2.1639
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    References listed on IDEAS

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    1. Pasiouras, Fotios & Kosmidou, Kyriaki, 2007. "Factors influencing the profitability of domestic and foreign commercial banks in the European Union," Research in International Business and Finance, Elsevier, vol. 21(2), pages 222-237, June.
    2. Serhat Yuksel & Hasan Dincer Author-Workplace-Associate Professor of Finance, School of Business and Management Sciences & Umit Hacioglu, 2015. "CAMELS-based Determinants for the Credit Rating of Turkish Deposit Banks," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 4(4), pages 01-17, October.
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