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Commercial banks are established for the purpose of earning profit through accepting savings, and utilizing these savings of their customers to extend loans and advance on which they charge interest. These banks attract the public to deposit by giving interest rate on those deposits once made with them. All the commercial banks are controlled by the Central Bank of Tanzania (BoT).

Some of the commercial banks operating in Tanzania are National Bank of Commerce (NBC), National Microfinance Bank (NMB), Akiba Commercial Bank (ACB), Standard Chartered Bank (SCB), Stanbic Bank (SB), , Diamond Trust Bank (DTB), Exim Bank (EB), Cooperative Rural Development Bank (CRDB), Kenya Commercial Bank (KCB) etc . Apart from those mentioned strengths of commercial banks, there are some weaknesses too, including:

1.Loans repayment interest rate is high. Many people are discouraged fro taking loans because of high interest rate. For instance, some banks chargeup to 36% interst rate.

2. Bureaucracy in taking loans from the banks. The filling in the application form and the maturity of the loan takes a lot of time.

3. Referees and collateral security is a hindrance to many customers. Due to this requirement, not everybody can get loans.

4. Low accountinterest rates. Owners of the accounts in the banks are paid little interest annually. This discourages people to deposit their money in commercial banks.

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