Browsing by Author "Mwankemwa, Suma P."

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Determinants of Banks Private Sector Credit Supply in Tanzania
(Tanzania Institute of Accountancy, 2023-06) Mwankemwa, Suma P.
What determines the supply of private sector credit is an issue of policy and research interest in Tanzania. Using the Autoregressive Distributed Lag (ARDL) framework, this paper examines relevant factors influencing the supply of private sector credit by banks after the liberalization of the financial sector in Tanzania. The results revealed that a model with real private sector credit as the dependent variable was superior to the alternative model, and real short term lending rate was statistically a superior regressor compared to the real overnight bank lending rate. Moreover, it was found that bank deposits is an unimportant determinant of private sector credit, and that growth and inflation respectively had positive and negative effects on bank credit supply. The results also suggested that real bank credit growth was co-integrated with its determinants over the long run. The results from the analysis imply that policy should focus on policy interventions which promote economic growth, healthy bank balance sheets, and reasonable spread as motivating factors for banks to enhance supply of private sector credit in the country.
Eﬀects of Government Debt on Monetary Policy Strategy in Tanzania
(African Journal of Accounting and social science (AJASSS), 2022-06-30) Mwankemwa, Suma P.
This paper examines the fscal dominance hypothesis in Tanzania by exploring the relationship between the monetary base and the government debt using monthly data from 2003:1 to 2019:12. Results from formal statistical tests indicate no evidence of a long-run relationship between the variables. Structural vector autoregressive model is thus estimated to analyse the short-run dynamics. The fndings point to a positive and statistically signifcant impact of government debt on monetary base. The fndings identifes political phenomenon that before the fourth phase government (2003-2005), monetary policy witnessed relatively intensive fscal dominance as compared to the fourth phase (2005- 2015) and ffth phase government (2015-2019). However, in comparison with the fourth phase government, fndings suggest that during the frst four years of the ffth phase government, monetary policy encountered a relatively high fscal inﬂuence, partly attributed to implementation of huge development projects and reduction in foreign fnancing in the government budget. The identifed fscal dominance for the sample period, implies a subordinated monetary policy, compromising on Bank of Tanzania’s primary objective of price stability.