We examines critically the impact of financial sector reforms in bank ownership on economic efficiency of Tanzanian commercial banks. We adopted qualitative and quantitaitve methods for data collection. We collected primary data from bank customers and bank officials of thirty two commercial banks in Tanzania that were already registered by the Bank of Tanzania at the end year 2010. A self-administered questionnaires were distributed to 1600 customers and 184 bank officials. Of these, 893(60%) bank customers and 81(44%) bank officials responded. Data were analysed using SPSS 17.0 to estimate the mean (SD) score as well as correlation test. Results show that there is no positive relationship between reforms on bank ownership and economic efficiency of commercial banks and therefore conclude that commercial banks efficiency has slightly been impacted by the reforms in bank ownership
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