Kilimanjaro Cooperative Bank Limited (KCBL) has been named the winner of the Tanzania Best Banks Award by the Tanzania Institute of Bankers (TIOB). The award recognises the banking sector’s achievements. KCBL has become the first winner of the Tanzania’s Best Banks. This bank is one of the first banks to adopt the warehousing receipt system in the country.
Resilient problem-solving
KCBL has shown resilience and a professional approach to problem-solving in banking According to Patrick Mususa, the TIOB Executive Director, the bank’s story in recent years is a remarkable example of this. In 2020, KCBL faced liquidity issues, and CRDB bailed it out with 7bn/-. However, the cooperative bank has since transformed from a loss-making entity to a profitable bank. In 2021, KCBL made a pre-tax profit of 318m/- and extended loans amounting to 4.7bn/- while deposits rose to 5.5bn/-.
Competition among banks is healthy
The Tanzania Best Banks Awards brought together the Bank of Tanzania, bankers from the industry, trainers, and the sector’s professional partners. ABSA bank won the second prize, followed by Azania bank, while Equity bank came in fourth place. Other categories of awards included the most conscientious bank award, won by NMB bank and Azania bank, and the most cautious bank award, won by Stanbic bank and Equity bank. ABSA bank Tanzania swept the best bank presentation.
Patrick Mususa believes that competition among banks is healthy. He thinks that the financial services sector should offer a wide range of products that will match what the economy and consumers need. The TIOB has been training Tanzanian bankers to world-class standards since 1993. Its mission is to adhere to professional excellence grounded on ethics, integrity, and quality in all of its undertakings.
Managing risks
The event also marked the end of the Tanzanian Banks Challenge, a 2-month bank risk management competition that simulates banking industry conditions and the market environment. The competition, organised by TIOB in collaboration with ICAP Training Solutions, tests bankers’ ability to make the right decisions that will give results needed to become the best bank.
According to Mususa, banking is the business of taking on and managing risks, and the levels of risks are ever-increasing in the market. The competition teaches participating professionals team collaboration skills and effective work under stress. Mususa noted that the competition is part of TIOBs strategy of offering training that reflects the very dynamic conditions of the global financial markets.
Positive outlook
Mususa remained upbeat about the future of the awards. He noted that the second edition of the event would bring in more bankers, members from academia, policymakers, government and non-bank sectors of the financial services industry. “This success story is an indication that our banks can succeed. In fact, Tanzanian banks are in a very good state and are responding well to the shocks from the global financial markets,” Mususa said.
