CRDB Bank
Encyclopedia
CRDB Bank is a commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...

 in Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...

. It is one of the commercial banks licensed by Bank of Tanzania
Bank of Tanzania
The Bank of Tanzania is the central bank of the United Republic of Tanzania. It is responsible for issuing the national currency, the Tanzanian shilling....

, the national banking regulator.

Overview

, the bank is a large banking institution, providing commercial banking services to individuals, small-to-medium sized corporate clients and large corporations. , CRDB Bank was one of the largest commercial banks in Tanzania, with a total asset valuation of over US$1.54 billion (TZS:2,300 billion) and shareholders' equity valued at approximately US$161.8 (TZS:270.9 billion). The shares of stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...

 of CRDB Bank are listed on the Dar es Salaam Stock Exchange, where they trade under the symbol: CRDB.

History

CRDB Bank was formed when the former Cooperative Rural Development Bank which was wholly government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...

 owned was privatized, recapitalized and restructured. DANIDA
DANIDA
Danish International Development Agency , is a Danish organisation inside the Ministry of Foreign Affairs of Denmark, set up to provide humanitarian aid and assistance in developing countries.-Origin of name:...

 played a significant role in re-structuring the new institution and is a part owner of the new bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...

.

Despite all kinds of warnings DANIDA, reconstructed an insolvent bank in early 1990s. Now it is the biggest bank in Tanzania controlled by large by Danida of the 'modern state' of Denmark . In 2009, British Oxford Policy Management, OPM evaluated. The situation was "When a donor is playing to its' strength". The recommendation was "..maximises its impact on growth".. OPM said to focus much more on the strategic general question of building a financial sector for more than just one bank. Danida's responds was the following: "However, there are also some recommendations that the Ministery of Foreign Affairs can not endorse. These include recommendation that the FSDT should have to, to a greater extent focus on the general strategic issues within the financial sector." Abbreviation: FSDT, Financial Sector Deepening Trust.. In 2010, things remain irrational, the politics of the whole industry, Tanzania Banker Association are dominated by Danida, the donor and not rational market economy.

Ownership

CRDB Bank is owned by institutions and private individuals as detailed in the table below:

{| style="font-size:95%;"
|-
| width="80%" align="center" | CRDB Bank Stock Ownership
|- valign="top"
|
{| class="wikitable sortable" style="margin-left:auto;margin-right:auto"
! style="width:2em;" |Rank !!Name of Owner!!Percentage Ownership
|-
|1||Private Individuals via DSE||37.0
|-
|2||DANIDA
DANIDA
Danish International Development Agency , is a Danish organisation inside the Ministry of Foreign Affairs of Denmark, set up to provide humanitarian aid and assistance in developing countries.-Origin of name:...

||30.0
|-
|3||Tanzanian Cooperatives
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...

||14.0
|-
|4||Tanzanian Institutions
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...

||10.2
|-
|5||Government of Tanzania Parastatals||8.8
|-
|6|| TOTAL||100.0
|-
|}

Branch Network

As of February 2009, CRDB Bank has a network of fifty four (54) branches in all regions of Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...

.

Regional expansion

In early 2009, the bank announced plans to enter neighboring countries by establishing subsidiaries in Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...

, Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...

, Rwanda
Rwanda
Rwanda or , officially the Republic of Rwanda , is a country in central and eastern Africa with a population of approximately 11.4 million . Rwanda is located a few degrees south of the Equator, and is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of the Congo...

 and Burundi
Burundi
Burundi , officially the Republic of Burundi , is a landlocked country in the Great Lakes region of Eastern Africa bordered by Rwanda to the north, Tanzania to the east and south, and the Democratic Republic of the Congo to the west. Its capital is Bujumbura...

. In November 2011, Tanzanian press reports indicated that CRDB Bank planned to cross-list on the Nairobi Stock Exchange
Nairobi Stock Exchange
The Nairobi Securities Exchange is the principal stock exchange of Kenya. It began in 1954 as an overseas stock exchange while Kenya was still a British colony with permission of the London Stock Exchange. The NSE is a member of the African Stock Exchanges Association...

 (NSE) and on the Uganda Securities Exchange
Uganda Securities Exchange
The Uganda Securities Exchange is the principal stock exchange of Uganda. It was founded in June 1997. The USE is operated under the jurisdiction of Uganda's Capital Markets Authority, which in turn reports to the Bank of Uganda, Uganda's central bank.The exchange's doors opened to trading in...

 (USE). The same reports indicated that the bank's first foreign subsidiary will be established in Burundi
Burundi
Burundi , officially the Republic of Burundi , is a landlocked country in the Great Lakes region of Eastern Africa bordered by Rwanda to the north, Tanzania to the east and south, and the Democratic Republic of the Congo to the west. Its capital is Bujumbura...

 in 2012.

External links


See also

  • List of banks in Tanzania
  • Microfinance in Tanzania
    Microfinance in Tanzania
    Microfinance in Tanzania began with NGOs and SACCOs in 1995 and has continued to grow with the increased success of microfinance internationally....

  • Economy of Tanzania
    Economy of Tanzania
    - History :Significant measures have been taken to liberalize the Tanzanian economy along market lines and encourage both foreign and domestic private investment. Beginning in 1986, the Government of Tanzania embarked on an adjustment program to dismantle socialist economic controls and encourage...

  • Dar es Salaam Stock Exchange
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