Tanzania Daily News (Dar es Salaam)

Tanzania: Dar es Salaam Bank U.S. Loans Portfolio By 30 Percent

THE DCB Commercial Bank Ltd will increase its loan budget for next year by 30 per cent from the current 66bn/- to enable more clients access loans for their economic development projects.

DCB Chief Manager Finance, Ms Consolata Lalika, told reporters that the bank has considered dishing out more loans to its customers because it is expanding its services and registering more customers.

Ms Lalika noted that the bank intends to undertake various programmes for the coming year as well the achievements it recorded since it was established. She mentioned the most remarkable progress as the recent recognition by the National Board of Accountants and Auditors (NBAA) where for the first time the bank emerged overall second winner in the banking institutions' category.

"We are set to improve services to our clients in the coming year because they are part of the bank's achievements. "We think they are also part of the award we scooped in the area of International Financial Reporting Standards (IFRS) which we have been party to for the last three years," she said.

She, however, said the bank was still facing a number of challenges including a substantial number of its customers applying for facilities like micro housing loans but fail to submit supporting documents. "Experience has shown that people wish to develop their properties but very few can manage to produce supporting documents as collateral," noted Ms Lalika.

As a result, she said, most of the beneficiaries of their loans' schemes are salaried staff. Competition in the banking industry is another challenge facing the institution which was recently promoted by the Bank of Tanzania (BoT) to operate as a fully-fledged commercial bank and listed as a public company in the Dar es Salaam Stock Exchange (DSE).

The bank, she observed, has high labour turnover which currently stands at 10 per cent, noting that the bank has a number of strategies to attract and retain its staff including maintaining a succession plan.

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