Abstract:
The study described an assessment on the effects of the credit risk management on loan
performance in Tanzanian banks, It was guided by three predicting variables tested on loan
performance as the dependent variable namely lending access, returns to investment and reduction
in default. A systematic literature review was conducted , Assenga (2019) who assessed the effect
of liquidity towards financial performance in investment banks in Tanzania and Maseta (2021) who
assessed the effect of non-performing loans towards performance of investment banks in Tanzania, from their study, both recommend thatitis essentialforthe study to be envisaged towards credit
risk management pertaining to loan performance prior to the development banks in Tanzania
therefore the study assessed the effect of creditrisk management on loan performance in TADB. The Study was approached quantitatively using explanatory study design whereas causality
relationship testing was conducted to generate new knowledge on the inquired subject. Data were
collected from the Tanzania Agriculture Development Bank (TADB) employees as the case using
structured questionnaires on a purposive sample size of 100. The data were assembled and
grouped altogether such that were computed in SPSS version 23.0 for the generation of relevant
statistical tests to present the results of the study. Descriptive statistics were generated to show the
demographic features of the respondents on the overview of the employees in the bank. Besides
that, correlation and multiple regression analysis were also used to show the existing relationship
between study variables in filling the inquiry gap. Study results were evident that all three
independent variables namely lending access,returns to investment and reduction in default have
all been revealed positive with significant effect on loan performance as the dependent variable. This therefore implies that loan performance in development banks in Tanzania through credit risk
management is influenced by lending access, returns to investment and reduction in def
