15 January 2019

Tanzania: Risk Management Course Tame Bad Loans

Tanzania Institute of Bankers (TIOB) yesterday launched the Credit Risk Modelling course to help financial institutions make better lending decisions.

The TIOB Executive Director Patrick Mususa said at the launching event in Dar es Salaam over the weekend that the course will help financial institutions to make better lending decisions, improve assessment of credit risk and help financial institutions to know their risk factors.

"We are excited about this new learning initiative because the online school will be cost effective and efficient learning opportunities for professional bankers," Mr Mususa said.

Developed in partnership with US-based Kentara Analytics, the first online course covers Modelling defaults, credit risk data, scoring models and credit ratings, analytics, simulations, capital allocation and risk contributions and risk adjusted performance measures.

Bank of Tanzania's (BoT) Manager, Financial Institution Supervision Department, Nassor Omary, described the course as an enabler of financial institutions in informed decision making.

Representing the Deputy Governor, Financial Stability and Deepening, Mr Omary applauded TIOB for completion of the online learning platform and the kickoff of which he described as 'important course'.

He implored all financial institutions to register and ensure all professionals handling credit related issues have undertaken the course.

Mr Mususa said risks associated with credits and lending have grown over the years, necessitating efforts to bridge the gap and address the default risks that lenders and borrowers are disposed to.

"The significant growth of non-performing loans (NPLs) as banks continue to issue loans is a key example of the risk growth," said the TIOB boss.

NPLs are key factor in the performance of any financial institution that sells credit as one of its business activities.

Increasing NPLs ratio against the total loan book of the financial institution can only be tolerated if it doesn't put at risk the funds available for daily operations.


Magufuli Hints At Why He Fired Environment Minister January Makamba

President John Magufuli today July 22, swore in Mr George Simbachawene as Minister of State in the Vice President's… Read more »

See What Everyone is Watching

More From: Daily News

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.