What is it about?
Capital is important in banking operations. Given a the need to develop and sustain small traders a Municipal based community bank was established following a Presidential order. Raising the needed capital to meet the regulatory requirement and the expansion needs of the services was a bit challenging experience by the management. The case explains the process and various options used.
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Why is it important?
Governments in the developing countries have been struggling to establish various financing mechanisms for micro, small and medium enterprises and one of the strategy have been establishment of community banks. However, there has been aspects of government failures and market failures in provision of banking services and capital raising especially those aimed to support micro, small and medium scale businesses.
Perspectives
Writing this article was a very good experience. Started from the classroom on how to develop a case study, to interviewing various stakeholders in the banking environment, politicians and government officials. Also practicing the case has been an added advantage to my teaching for undergraduate and postgraduate students in banking and financial institutions. I hope you will find the article interesting and of use.
TOBIAS SWAI
University of Dar es Salaam
Read the Original
This page is a summary of: Municipal-owned community bank: capital raising dilemma, Emerald Emerging Markets Case Studies, October 2019, Emerald,
DOI: 10.1108/eemcs-02-2018-0027.
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