ABSTRACT
Credit rating assessment to entities, such as commercial banks in Tanzania, is still
under the infant stage. This study made a comparative analysis of local and
international credit rating assessments of Tanzanian commercial banks. It adopted
time series research design in measuring the variables in ratios, data covered
published secondary quarterly financial report from 2009-2019. The study also made
40 observations from each bank based on CRDB and NMB commercial banks to
analyze the rating assessment.
The analysis revealed that, in credit assessments, Tanzanian commercial banks of
NMB and CRDB are likely to suffer significantly from capital adequacy,
management quality, earning capability and liquidity. The study further findings
showed that the Tanzanian regulatory system (locally) considerers lower standards as
compared to international standards. CRDB and NMB combined had satisfactory
outlook rating scores that signified fundamentally soundness with modest amendable
weakness (rating average of „2‟). However, NMB appeared to be better in ratings
than CRDB in the period of 10-years analyzed quarterly.
The study recommends local systems to consider the establishment of sophisticated
standards to indicators in credit rating assessments, such as management competence
and earning capability since they significantly affect the credit rating assessments
with reference from international standards to upgrade and improve the position of
the credit rating scores to Tanzanian commercial banks given the unstable
economies.
MWAMBE, A (2021). Comparative Analysis Of Local And International Credit Rating Assessments Of Tanzanian Commercial Banks. Afribary. Retrieved from https://tracking.afribary.com/works/comparative-analysis-of-local-and-international-credit-rating-assessments-of-tanzanian-commercial-banks
MWAMBE, ANDREW "Comparative Analysis Of Local And International Credit Rating Assessments Of Tanzanian Commercial Banks" Afribary. Afribary, 25 Apr. 2021, https://tracking.afribary.com/works/comparative-analysis-of-local-and-international-credit-rating-assessments-of-tanzanian-commercial-banks. Accessed 17 Nov. 2024.
MWAMBE, ANDREW . "Comparative Analysis Of Local And International Credit Rating Assessments Of Tanzanian Commercial Banks". Afribary, Afribary, 25 Apr. 2021. Web. 17 Nov. 2024. < https://tracking.afribary.com/works/comparative-analysis-of-local-and-international-credit-rating-assessments-of-tanzanian-commercial-banks >.
MWAMBE, ANDREW . "Comparative Analysis Of Local And International Credit Rating Assessments Of Tanzanian Commercial Banks" Afribary (2021). Accessed November 17, 2024. https://tracking.afribary.com/works/comparative-analysis-of-local-and-international-credit-rating-assessments-of-tanzanian-commercial-banks