Abstract:
The study was done to assess nexus between selected banking industry indicators and economic
growth with evidence from Tanzania. It was specifically aiming at determining nonperforming
loans, bank frauds and interest rate in relation to economic growth. All banks operating in
Tanzania were taken as a population for this study from which the study selected CRDB
Headquarter as its area of the study. The study used two approaches for sampling and data
collection. Samples of 36 respondents were selected for interviewing (primary data) purpose. All
data collected (primary and secondary) ware analysed using the ipso facto method and the
description was made. The study observed the validity and reliability as well as considering ethical
issue. The findings revealed that nonperforming loans, bank frauds and interest rate, generally,
had a negative impact on Tanzanian economic growth (GDP). It recommended that the three
variables (nonperforming loans, bank frauds and interest rate) must be well observed by
Tanzanian encomiasts, banking stakeholders as well as investors so as to develop the GDP.
