Six biggest banks control more than half the sector

05Sep 2018
Fumbuka Ng'wanakilala
DAR ES SALAAM
Financial Times
Six biggest banks control more than half the sector
  • LOPSIDED Some analysts warn that the concentration of banking activity in just a handful of institutions could lead to a collusive arrangement where the largest banks set lending and savings interest rates

SIX biggest banks own more than half of the 33 trillion/- in assets held by Tanzanian banks despite the presence of 40 fully-fledged commercial banks operating in the country, the Financial Times can reveal from a review of financial statements.

The ‘Big Six’ - CRDB Bank Plc, NMB Bank Plc, the National Bank of Commerce (NBC), Standard Chartered Bank, Stanbic Bank and Exim Bank - also control the lion’s share of customer deposits in the sector.

 

This means that the Tanzanian banking industry is effectively an oligopoly, with a small number of banks controlling the business.

 

According to the latest economic bulletin from the Bank of Tanzania (BoT) for the quarter ended June 2018, the country’s commercial banks have total assets of 33.035 trillion/-.

 

But close to 18 trillion/- of those assets are owned by just the six biggest commercial banks.

 

CRDB is the largest bank in the country in terms of both assets and deposits, closely followed by NMB. The two giants of the local banking sector alone own over 35 per cent of total assets in the industry and hold a combined 40 per cent of deposits.

 

CRDB and NMB have left a huge gap between themselves and the third largest bank (NBC) in concentration of banking assets and deposits, a review of recently-published financial statements of commercial banks has revealed.

 

The Top Ten largest banks in Tanzania based on assets are CRDB (6.027 trillion/-), NMB (5.66 trillion/-), NBC (1.927 trillion/-), Standard Chartered (1.527 trillion/-), Stanbic (1.338 trillion/-), Exim (1.228 trillion/-), Diamond Trust Bank (1.183 trillion/-), Barclays (0.888 trillion/-) and Bank M (0.846 trillion/-).

 

The share of customer deposits in the banking industry is similarly dominated by the same usual suspects of CRDB (4.42 trillion/-), NMB (4.14 trillion/-), NBC (1.36 trillion/-), Standard Chartered (0.99 trillion/-), Diamond Trust Bank (0.94 trillion/-), Stanbic (0.85 trillion/-), Exim (0.68 trillion/-), Citibank (0.65 trillion/-), Barclays (0.61 trillion/-) and Bank M (0.42 trillion/-).

 

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