Open Access Journal of Economic Research

Determinants of Banks Health Evidence from Tanzania

Abstract

Kaula Stephen

The study assesses on the determinants of bank’s health. By employing explanatory research design and secondary panel data in the time interval of 2015 to 2022 were involved. The annual financial data from 5 banks listed in Dar Es Salaam Stock Exchange (DSE) were subjected into analysis. Analysis involved the use of descriptive statistics, partial least square regression and linear regression. From the analysis it was revealed that credit risk was negative significant determinant of bank company value. Moreover, good governance, return on assets and capital adequacy has positive and significant influence on bank company value. Thus, the study recommend that credit risks operation managers have to undertake effective lending assessment in determining credit worth customer. Also, the corporate and financial management has to ensure maximization on return on assets, maximized capital adequacy and exercise good governance for revelation of bank company value as well as its health.

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