Browsing by Author "Richard, Evelyn"

Now showing 1 - 3 of 3
  • Thumbnail Image
    Item
    BANKERS’ PERCEPTION ON THE IMPACT OF COVID-19 IN THE BANKING SECTOR
    (Center for Banking and Financial Services Research, 2020-05-20) Swai, Tobias A.; Richard, Evelyn
    The presentation offers results from an online survey of 127 Bankers on the Impact of COVID-19 in the banking sector in Tanzania. The respondents indicated that COVID-19 might have a long term impact to businesses and the economy. Mostly affected sectors being tourism, hotel and restaurants. Banking profitability, foreign exchange exposure, new savings and risks profile of current investments likely to be affected. Intervention by Central bank on policies related, special minimum reserve, liquidity support, revision of net open position is highly recommended.
  • Thumbnail Image
    Item
    Effect of Debtors on Performance of Small and Medium Enterprises
    (2018) Richard, Evelyn; Mori, Neema
    The paper assesses effect of credit sales on performance of small and medium enterprises (SMEs) in Tanzania using the credit risk management perspective. Asymmetric information and trade-off theory of liquidity guided the study whereby a dataset of 6,134 Tanzanian SMEs was used. Descriptive and regression methods were used as analyses techniques. Results confirm that majority of SMEs sell on credit (54%). Despite efforts they put into managing their debtors, 26 percent of them default. The results further showed that SMEs incur relatively high costs when managing debtors, an aspect, which hampers their performance. Costs incurred relate to financing, administration and moral hazards problems. The paper contributes to asymmetric information and trade- off of liquidity theories by showing how the relationship between SMEs and debtors can be hampered by ex-post asymmetric information whereby debtors decide to act in their own interests but against seller's interests, a pattern, which contravenes terms of their contracts. The study highlights main challenges faced by SMEs while managing debtors. Bad debts put pressure on SMEs’ cash flow thereby limiting growth of their businesses. Education level was seen to be important when managing debtors.
  • Thumbnail Image
    Item
    Effect of Debtors on Performance of Small and Medium Enterprises
    (2018-10) Richard, Evelyn
    The paper assesses effect of credit sales on performance of small and medium enterprises (SMEs) in Tanzania using the credit risk management perspective. Asymmetric information and trade-off theory of liquidity guided the study whereby a dataset of 6,134 Tanzanian SMEs was used. Descriptive and regression methods were used as analyses techniques. Results confirm that majority of SMEs sell on credit (54%). Despite efforts they put into managing their debtors, 26 percent of them default. The results further showed that SMEs incur relatively high costs when managing debtors, an aspect, which hampers their performance. Costs incurred relate to financing, administration and moral hazards problems. The paper contributes to asymmetric information and tradeoff of liquidity theories by showing how the relationship between SMEs and debtors can be hampered by ex-post asymmetric information whereby debtors decide to act in their own interests but against seller's interests, a pattern, which contravenes terms of their contracts. The study highlights main challenges faced by SMEs while managing debtors. Bad debts put pressure on SMEs’ cash flow thereby limiting growth of their businesses. Education level was seen to be important when managing debtors.