By Azania Post Reporter
PRESIDENT Dr John Magufuli has ordered restructuring of the Tanzania women Bank (TWB) over poor performance since it was established more than three years ago.
Speaking shortly before inaugurate the ruling CCM women’s wing (UWT) annual general meeting in Dodoma on Friday, Magufuli said the bank is under-performing.
He said the bank has higher interest rate which deters many women to take loans hence reduce back their efforts towards development.
“Major borrowers of this women bank are men they are people who benefited much , it is wonderful , we have to change this, “he said.
Magufuli who is also CCM National Chairman urged UWT leaders who will be elected in the meeting to help the party in restructuring the bank.
“We will have to restructure this bank and make it competitive so as most women benefit instead of the current situation where they are side-lined,” he noted.
However, one of the major problem which is facing the TWB and some local banks were non-performing loans (NPL).
NPL is the sum of borrowed money that is either in default or close to defaulting.
A data analysis put at least four commercial banks on tight spot and on a potential to lose a staggering Sh372.524 billion if nothing is done by their management teams to contain their rising NPLs.
The Women's Bank, however, profit losses eases after posted a loss of 107m/- a better level in Q1 compared to a loss of 473.4m/- in Q1 last year.
Recently the Bank of Tanzania warned financial institutions against increasing nonperforming loans above the acceptable threshold rate of 5 per cent.
The ratio in the banking industry was 9.53 per cent in December 2016.
BoT Banking Supervision director Kened Nyoni was quoted as saying that measures had been taken to address the issue of NPLs.
He said as part of the monitoring process, BoT had been conducting regular onsite and targeted examinations to identify internal weaknesses which might lead to an increase in NPLs including the quality of credit risk assessment.
He said banks having high NPL ratios are required to devise strategies including implementing aggressive recovery measures.