Non- performing assets and their impact on growth of banking industry in Tanzania: A case of NMB bank

The aim of the study is to assess the impact of non-performing assets on the growth of banking industry in Tanzania specifically NMB Bank. The objectives of the study accessed the impact of non-performing assets on growth of banking industry, analyzed the causes for non-performing assets in banks. Furthermore it explored and identified specific steps that bank officers have to deal with the problems. The findings revealed that the impact of non-performing assets facilitated by non-recovery of loans, hence caused great harm to the economic framework and structure, loss of trust of dishonest, reduced customer ability in buying, legal issues, lack of aggressive credit collection policy, poor credit assessment. Moreover specific steps taken by bank managers to avoid drastic downfall and the recovery of crisis with meaningful suggestions for financial stability. The study recommended that the bank management have to provide enough education on loan management to their clients as well as their workers. The banks also have to ensure that sufficient and quality staffs are trained. The management of the bank has to review its credit management policy in order to improve the quality of assets. The creation of manageable lending behavior should be managed properly with the regular check of the value and other legal status.