Determinants of Interest Rate Spreads in Commercial Banks– A Case of Tanzania

Determinants of Interest Rate Spreads in Commercial Banks– A Case of Tanzania

Edward Ntulo

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Determinants of Interest Rate Spreads in Commercial Banks– A Case of Tanzania

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Abstract

The improvement of financial sector in Tanzania by the introduction of financial reforms was expected to improve the efficiency of the financial sector which includes lowering the Interest rate spread. Beyond the expectations of the reforms the interest rate spread is high with no sign of narrowing down. This study was set to analyse the determinants of Interest rate spread in Tanzania commercial banks focusing on the internal characteristics. Data from commercial banks incorporated before 2002 were extracted and analysed using SPSS 16 and regression model was established. The results indicate that operating costs, loan loss provisioning, and liquidity risk increases the interest rate spread. While factors of required reserve and non-interest income decrease the interest rate spread.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Edward Ntulo. 2018. \u201cDeterminants of Interest Rate Spreads in Commercial Banks– A Case of Tanzania\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 18 (GJMBR Volume 18 Issue C6).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

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GJMBR-C Classification JEL Code: G21

Submission ReceivedDecember 9, 2017
Peer Review Double Blind
Handling Editor
Accepted January 2, 2018
Published January 15, 2018

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v1.2

Issue date

November 14, 2018

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Article Matrices

Total Score: 101

Country: Tanzania

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Edward Ntulo (PhD/Dr. count: 0)

View Count (all-time): 207

Total Views (Real + Logic): 2971

Total Downloads (simulated): 1505

Publish Date: 2018 11, Wed

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Total Views: 2971

Total Downloads: 1505

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