Liquidity Perfomance on Non Banking Financial Institution

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Table of Contents
ABBREVIATIONSiv
DEFINITION OF TERMSv
CHAPTER ONE7
1.0 INTRODUCTION7
1.1 BACKGROUND INFORMATION7
1.2 STATEMENT OF THE PROBLEM7
1.3 SIGNIFICANCE OF THE STUDY8
1.4 RESEARCH OBJECTIVES8
1.5 RESEARCH QUESTIONS8
1.6 SCOPE OF THE STUDY9
1.7 LIMITATIONS OF STUDY9
CHAPTER TWO10
LITERATURE REVIEW LIQUIDITY PERFORMANCE ON NON-BANKING FINANCIAL INSTITUIONS10 2.0 INTRODUCTION10
2.1 Theoretical literature review10
2.1.2 Liquidity problems facing non-Banking Financial Institutions13 2.1.3 Ways to eliminate Liquidity problems14
2.1.4 Need for Liquidity16
2.1.5 Roles and Importance of Non-Banking Financial Institutions in Tanzania19 2.2 Empirical Literature Review19
CHAPTER THREE20
3.0 RESEARCH METHODOLOGY20
3.1 RESEARCH DESIGN20
3.2 RESEARCH TECHNIQUES20
3.3 POPULATION AND UNITS OF ENQUIRY21
3.4 SAMPLING TECHNIQUE21
3.5 SAMPLE SIZE22
3.6 DATA COLLECTION METHODS22
3.7 OBSEERVATION23
3.8 INTERVIEW23
3.9 QUESTIONNAIRES24
3.10 DOCUMENTARY REVIEW24
3.11 SOURCES OF DATA25
3.12 DATA PROCESSING25
3.12.1 Quantitative data25
3.12.2 Qualitative data25
3.13 DATA ANALYSIS25
4.0 APENDICES27
4.1. RESEARCH BUDGET27
4.2.RESEARCH QUESTIONAIRES:29
INTERVIEW GUIDE QUESTIONS30

ABBREVIATIONS

SACCOS:Savings and Credit Cooperative Societies.
NBFI’s:Non- Banking Financial Institutions.
RC:REGIONAL COMMISSIONER
LTD: Limited.
USA: Unites States of America.
UK: United Kingdom (England).
TZS/TSHS: Tanzanian shillings.
BoT: Bank of Tanzania.

NSSF : National Social Security Fund.

PPF : Pension Provident Fund.

DEFINITION OF TERMS

Asset securitization: Is the process that involves the collection or pooling of loans and the sale of securities backed by those loans. It also means more than one institution may be involved in lending capital to one firm.

Liquidity means how easy it is to buy and sell a financial instrument for cash without causing any significant change in its price. A very actively traded market, where it's easy to sell whatever you're holding for cash without discounting its price heavily is said to be a liquid market. It also refers both to that quality of a business which enables it to meet its payment obligations, in terms of possessing sufficient liquid assets; and to such assets themselves. Liquidity is prized because it increases the 'efficiency' of a market - that is, its capacity to find the 'true price' of whatever is being traded

Liquidation is act of exchange of a less liquid asset with a more liquid asset.

Liquidity risk: the risk that arises from the difficulty of selling an asset. It can be thought of as the difference between the “true value” of the asst and the likely price, less commissions.

Non- Banking Financial Institutions these are the financial Institutions which acts as the intermediation between the Net servers and the Borrowers

Saccos are the informal deposits and savings groups that accepts deposits from the small income earners who are their members and latter lend them to the borrowers who are also their members, with the minimum interest rate.

CHAPTER ONE

1.0 INTRODUCTION

This chapter deals with the background information, statement of the problem, significance of the study, research objectives and research questions, limitations of the study and the scope of this study.

1.1 BACKGROUND INFORMATION

In Tanzania, Non-Banking Financial Institutions are such as SACCOS, NSSF, PPF whereby amongst the problem that are facing the Financial Institutions especially Non-Banking Financial Institutions is liquidity performance. It has been so difficult to maintain the liquidity performance of the Financial Institutions. The qualified experts on the field are...
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