The Effects of the Budgetary Process on the Financial Performance of Commercial Banks in Tanzania: A Case of CRDB, NMB AND NBC

Abstract

The objective of the study was to investigate the effect of budgetary process on the Financial Performance of Commercial Banks which were NBC, NMB and CRDB in Dodoma Tanzania. The mixed method was used as both qualitative and quantitative data were used. The descriptive survey was used whereas randomly sampling was used to secure 95 respondents. Survey, interview and documentary review were used to collect data meanwhile descriptive and multiple regressions were used in data analysis. There was grounded on Resources allocation theory and structure efficiency theory. The results showed that budgetary process had positive and significant effect of Financial Performance of Commercial Banks. This is because R2 = 58.6% while at F (8, 87) = 28.86, p < 0.000 implied that budget process had positive and significant effect on FP of CBs in Dodoma Tanzania. Researcher recommended that budgetary process should be enhanced through an increased participation and enhance on internal controls.

Keywords: Commercial Banks, Financial Performance, budgetary process

DOI: https://doi.org/10.37745/ejaafr.2013/vol10n6986

Article Review Status: Published

Pages: 69-86 (Download PDF)

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