DRIVERS FOR FINANCIAL PERFORMANCE AND STABILITY: .

Abstract

Drivers of financial performance are very critical in the development, survival, sustainability, growth and performance of commercial banks. The study aim was to determine the drivers of financial performance of both local and foreign commercial banks in Tanzania. This study sought to; determine the capital risk effect on financial performance, the effect of corporate social responsibility on financial performance and to find out the effect of regulatory supervision on financial stability of the commercial banks. In this study a total of 34 respondents were targeted. In addition, the research design employed was case study design. Documentary review was utilized to collect data. Data was analysed using the Statistical Program for Social Science (SPSS) software version 20 and STATA version 14. In addition to tables, figures were used to present data. The study established that capital risk, corporate social responsibility and regulatory supervision are mostly responsible for the financial performance and stability of commercial banks. The commercial banks should regulatory guidelines to make financial decisions. Additionally, commercial banks ought to target on boosting the banks’ capital levels with the aim of improving their financial performance. In this way, the banks will be capable of exogenous shocks and have the potential to seize business opportunities as they arise consequently boosting their financial performance