Nexus between Selected Banking Industry Indicators and Economic Growth:

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.