According to Bank of Tanzania Monthly Economic Review, savings and time deposit accumulated to 6.2 trillion as per
the end of 2015.
This shows that only 8% of the bank clients have more than 1.5 million in their accounts.
This means that out of 6.2 trillion, over 5.8 trillion belong to merely 8% mostly corporate leaving only 0.4 trillion to other clients all over the country.
Mr Richard Malisa, Finance and Administration Manager of the Bank of Tanzania said, “Over 90% of bank clients have less than 1.5 million as they use the banks to channel their salaries only.”
Thus this attitude of not using the banks to deposit their savings affects the investment pattern; the banks lack the funds to lend to the investors hence the interest rates increase.