Integrating Financial and Non-Financial Measures to Measure the performance of Commercial Banks: Evidence from Tanzania

The study intends, to assess the performance of commercial banks in Tanzania, using financial and non financial measures. Using financial Data from annual reports and non financial data from balanced score card templates obtained from commercial banks as well as from survey data, the overall performance indexes were established for every individual commercial bank. A total of 21 commercial banks were involved in this study.Generally the overall performance indexes of commercial banks were found to be higher in large foreign banks, followed by large domestic bank and lastly Small banks. These results are consistent with efficiency score estimates found in previous studies. Where large foreign banks were found to be more efficient compared to the counterparts. The high performance of large Foreign Banks is due to the fact that these commercial banks have long history of implementing BSC compared to the counterparts. Therefore experience of application and technical know has enabled them to have a higher performance index compared to the premature adopters ’ large domestic banks and Small banks. Moreover we performed a statistical test to verify if the performance difference between the groups of commercial is significant or occurred by chance. Using one way ANOVA, The results indicate the performance differences between groups of commercial banks did not occur by chance, we reject the null hypothesis and accept the alternative one, which explain the significant difference in performance index between groups of performance o