The impact of bank ownership on banking competitiveness

Mr. Lucky Yona successfully defended his DBA thesis on: The Impact of Bank Ownership on Bank Competitiveness. The Case of Tanzanian Banks at MSM on Monday 27 June 2016.

Mr. Yona said that the MSM DBA program was an eye opener for him. “The program has enriched me in research skills and shaped my thinking capacity in the business and research arena. It also brought theory into practice and I highly recommend the program to serious and committed individuals.”

In his thesis he explaines that over the last two decades Tanzania embarked on different reforms in order to enhance the performances of the financial sector. One of the reforms was on the change in bank ownership structure. Banks ownership has now gone from being exclusively state owned, to private and semi-quasi ownership. This thesis aimed to study how bank ownership structure influenced the competitiveness of banks in terms of service quality, growth, efficiency, profitability and financial soundness. The findings revealed no relationship between bank ownership structure and service quality, growth, efficiency, profitability and financial soundness of the Tanzanian commercial banks although there is a significant difference in these competitiveness indicators between the two groups of banks. As regards to overall competitiveness private banks are more competitive than semi-quasi banks in terms of service quality, growth, profitability and financial soundness. However, further research is needed to study on Tanzania on the impact of other types of financial sector reform on the competitiveness.