TANZANIA INSTITUTE OF ACCOUNTANCY

(TIA)

CAMPUS: DAR ES SALAAM

DEPARTMENT OF BUSINESS ADMINISTRATION

ORDINARY DIPLOMA IN BUSINESS ADMINISTRATION

A FIELD REPORT ON COOPERATIVE AND RULAR DEVELOPMENT BANK

(CRDB)

NAME : WENSILAUS ALLY KIMBU

REG NO : DSM/DBA/21/83950

ACADEMIC YEAR : 2022/2023

SUPERVISOR NAME : KENAN MWAKENEMELA

SUBMISSION DATE : NOVEMBER 2023

A field attachment report submitted in partial fulfillment of the requirements for the
award of Diploma of Business in Administration of Tanzania Institute of Accountancy

i
 CERTIFICATION

The undersigned certifies that he has read and hereby recommends for acceptance by the
Tanzania Institute of Accountancy, a report entitled, Field Report, in partial fulfillment of the
requirements for the Diploma in Accountancy of the Tanzania Institute of Accountancy.

………………………
KENAN MWAKENEMELA

Date……………….

ii
 DECLARATION
AND
COPYRIGHT

I, WENSILAUS ALLY KIMBU, I declare to the Tanzania Institute of Accountancy that this
report is my own original work and that it has not been presented and will not be presented to
any other College for similar or any other diploma award.

…………….…….

Reg. no

…………………..

Date

ACKNOWLEDGEMENT
first of all, I would like to express my sincere gratitude to my parents (father and mother), for the
support they gave me all the time in my field, including finances and prayers, Second, I thank the
iii
field supervisor from CRDB Bank Mbezi Luis branch Esther P. Njana Manager business
development (MBD), along with all the staff at the credit department for the cooperation they
gave me all the time I was there, I also recognize the contribution of lectures from the Tanzania
Institute of Accountancy Dar es Salaam for the knowledge they gave me to achieve this field.

LIST OF ABBREVIATION
CRDB -Commercial Rural Development Bank

iv
MBD -Manager Business Development

PPF -Public Provident Fund

IFC -International Finance Corporation

NIDA -National Identification Authority

v
 ABSTRACT
Fieldwork allows students to learn through direct implementation of their future professional
roles in real workplace settings. It prepares students for meaningful and productive participation
in industry, the workforce and the community.

practical training for students is one of the ways to strengthen and improve the student's
understanding of the subjects learned in the classroom, it also helps the student to be competitive
in the competitive market

As a student, I have done different jobs as following, customer care, calculating loans, opening
bank accounts, providing education to new CRDB bank agents, and filing documents, and I had a
good time because the work I did reflected what I learned in class

There are challenges everywhere, as a field student I went through them and some of them I
solved myself, others with the help of the surrounding community.

vi
 Table of Contents
CERTIFICATION.........................................................................................................................................ii

DECLARATION AND COPYRIGHT........................................................................................................iii

ACKNOWLEDGEMENT............................................................................................................................iv

LIST OF ABBREVIATION..........................................................................................................................v

ABSTRACT..................................................................................................................................................vi

CHAPTER ONE............................................................................................................................................1

1.1 INTRODUCTION...............................................................................................................................1

1.2 Description of the agency....................................................................................................................1

1.2.1 Background of the agency............................................................................................................1

1.2.2 Functions of the agency................................................................................................................1

1.2.3 Mission and vision of the agency..................................................................................................1

CHAPTER TWO...........................................................................................................................................4

WORK PERFORMED..................................................................................................................................4

2.0 Introduction..........................................................................................................................................4

2.1 Opening Bank accounts.......................................................................................................................4

2.2 Customer care......................................................................................................................................4

2.3 providing education to CRDB bank agents.........................................................................................4

2.4 Filing documents..................................................................................................................................5

2.5 Calculating loans..................................................................................................................................5

2.6 To prepare and send account reports...................................................................................................5

CHAPTER THREE.......................................................................................................................................6
vii
LESSONS LEARNED...................................................................................................................................6

3.0 INTRODUCTION...............................................................................................................................6

3.1 How to open CRDB bank account.......................................................................................................6

3.2 How to Care customers........................................................................................................................6

3.3 criteria and how to get a loan from CRDB bank.................................................................................6

CHAPTER FOUR..........................................................................................................................................7

CHALLENGES AND MITIGATION STRATEGIES..................................................................................7

4.0 INTRODUCTION...............................................................................................................................7

4.1 CHALLENGES...................................................................................................................................7

4.2 MITIGATION STRATEGIES.............................................................................................................8

CHAPTER FIVE.........................................................................................................................................11

CONCLUSION AND RECOMMENDATION...........................................................................................11

5.1 INTRODUCTION.............................................................................................................................11

5.2 CONCLUSION..................................................................................................................................11

Appendix 1...................................................................................................................................................12

References....................................................................................................................................................12

viii
 CHAPTER ONE
INTRODUCTION

1.1 INTRODUCTION
This report gives a clear description of the agency. The description covers the background of the
agency, functions, organization structure, mission, vision and the main stakeholders.

1.2 Description of the agency

1.2.1 Background of the agency

CRDB Bank is a national private sector financial institution, based in The United Republic of
Tanzania, the bank was found in 1996 as Corporative Rural Development Bank (CRDB) of
Tanzania, following the privatization of state owned firm by the Tanzanian government.

1.2.2 Functions of the agency

Savings products, Loans, Trade Finance, Investments, Treasury products, Credit Cards,
Mortgages, Microfinance products, Agency Banking services, Premier Banking services, E-
banking products, Insurance,

1.2.3 Mission and vision of the agency

1.2.3.1 Mission of the agency

To provide competitive and innovative financial solutions through digital transformation, to

achieve a distinctive customer experience, while caring for our people and delivering a
sustainable contribution to the society

1.2.3.2 Vision of the agency

To be the leading Bank, which is customer needs driven with competitive returns to
shareholders?

1
1.2.4 The main shareholders

S/N SHAREHOLDER’S NAME EQUITIES %VALUATION

01 Danida Investment Fund 20.98 %

02 PPF Pensions Fund 13.28 %

03 National Social Security Fund Uganda 7.522 %

04 The Rock Creek Group LP 4.014 %

05 Abbas Export Ltd 2.144 %

06 Patrick Schegg 1.943 %

07 Change Global Investment LLC 1.840 %

08 Zanzibar Social Security Fund 1.410 %

09 Oddo BHF Asset Management GmbH 1.270 %

10 Hans Aiganya Macha 1.254 %

Location of the agency

CRDB Bank Mbezi Luis Branch, located at — Mbezi, Dar es Salaam, Tanzania. At the moment,
the bank closed. .q

Nearest banks

Sinza T/Segerea Stand, 5.98 km

Sinza Ubungo Municipal ATM1, 5.98 km

Kimara Postal Bank Mini Branch, 6.04 km

Sinza Kigogo, 6.58 km

2
Sinza Ubungo, 8.27 km

VICOBA SUSTAINABLE TRAINING CENTRE, 8.54 km

CRDB Bank UDSM Branch, 9.81 km

3
 CHAPTER TWO

WORK PERFORMED

2.0 Introduction
i performed different work during my field practice work, which are opening bank account,
customer care, providing education to new CRDB bank agents, filing documents, and calculating
loans as explained their below

2.1 Opening Bank accounts

I opened CRDB bank accounts for various customers who came to the CRDB Mbezi branch for
account opening based on the important features set by CRDB bank such as the customer must
have one of the voter's ID, nida number or passport, and the cost of opening a bank account
varies according to the account itself, for example the cost of opening a regular account which is
known as a pride account is ten thousand.

2.2 Customer care

I served customers who came to get various services at the customer service department, for
example a customer wants to go to a certain department in the bank, I direct him where to start
and get to where he wants, there are also some customers who came to get services and they
don't know how to read and write so I was responsibleI for filling in their forms if they were
required to fill in forms to get some services, I also served customers who came to monitor
blocked bank accounts by instructing them on how to return the service, including filling in the
form.

2.3 providing education to CRDB bank agents

I gave education to CRDB bank agents how to open bank accounts and other financial services,
there are some new agents who arrived at the CRDB bank branch in Mbezi to be educated on
how they can become CRDB bank agents, so it was one of my responsibilities as well.

4
2.4 Filing documents
every evening I worked to separate the documents and put them in the relevant file, according to
the number of customers, there was a procedure for all documents to be placed in one file for all
customers who came to get services, so when the evening came I was responsible for separating
those documents so that each document was in its respective file, for example, during the day,
customers can come to open bank accounts and take loans, all these documents stay in one file,
but in the evening, I separate the loan documents and put them in the loan file, and the
documents for opening the account, I put them in their respective files.

2.5 Calculating loans

I was also responsible for calculating loans for customers who wanted a loan from CRDB bank, I
pointed out the types of loans available and the interest charged by CRDB bank

2.6 To prepare and send account reports

This is the procedure of the CRDB bank, Mbezi Luis branch, to prepare a report that shows the
bank accounts that have been processed in terms of the opening per day, for example I prepared
reports that show, How many accounts have been opened and the total amount, how many
insurances have been provided and the total amount, loans have been given out for a number of
days and for how much, how many accounts are domant per day and the amount, how many staff
accounts have been opened and for how much, how many agency accounts have been opened
and for how much.

5
 CHAPTER THREE

LESSONS LEARNED

3.0 INTRODUCTION
As a student, I have managed to learn many practical and new things that I never did or learned
in class and it has made me gain experience and confidence, also by using the knowledge I
gained in class, it is obvious that there are many things I have learned as follows

3.1 How to open CRDB bank account

At first I didn't know how to open a CRDB Bank account, but through this field practice has
helped me to know what things are needed to open a CRDB bank account, for example, in order
for a customer to be able to open a CRDB bank account, he must have one of these things: a
driver's license, a voter's ID card, a national identity card or a NIDA number with the beginning
of ten thousand, so at first I did not know the importance of these things and how they are used

3.2 How to Care customers

In the beginning, I did not have the skills to serve customers (provide customer service), so the
bank employees instructed me how to serve customers, such skills include; positive attitude,
communication, resourcefulness, tenacity, adaptability, patience, technical knowledge, empathy,
active listening and problem solving

3.3 criteria and how to get a loan from CRDB bank

CRDB bank gives different loans to people of different groups, for example, employees of the
private sector recognized by CRDB bank, big businessmen, entrepreneurs, government
employees, all these groups get loans and with different criteria, so I have learned the same
criteria and procedures. to follow

6
 CHAPTER FOUR

CHALLENGES AND MITIGATION STRATEGIES

4.0 INTRODUCTION
The loan department in CRDB Bank grapples with various challenges inherent in the complex
world of lending. From the intricate task of assessing credit risks in an unpredictable economic
environment to the perpetual need for regulatory compliance, navigating these hurdles demands
strategic foresight. In response, mitigation strategies encompass robust credit risk assessments,
diversification of loan portfolios, adherence to evolving regulatory guidelines, and the
integration of technological solutions for enhanced efficiency. This introduction sets the stage for
a closer examination of the dynamic interplay between challenges and the proactive measures
undertaken by the loan departments to navigate and thrive in this ever-evolving landscape.

4.1 CHALLENGES
Credit Risk Management

The loan department faced challenges in assessing and managing credit risk. This involves
evaluating the borrower's creditworthiness, which was complex due to economic uncertainties,
market fluctuations, and changes in borrowers' financial conditions.

Regulatory Compliance

Adhering to constantly evolving financial regulations posed a challenge. Banks especially CRDB
must stay updated and ensure their loan practices comply with regulatory requirements, which
may involve significant administrative efforts and resources.

Interest Rate Risk

Fluctuations in interest rates had an impact in the profitability of loans. The loan department
must effectively manage interest rate risk to mitigate potential adverse effects on both the bank
and borrowers.

Technological Adaptation

Embracing and integrating new technologies for loan processing and management was
challenging. Adopting digital solutions requires significant investments and training to ensure
smooth operations and data security.

7
Market Competition

Intense competition among CRDB and other commercial banks for quality borrowers can affect
loan profitability. Striking a balance between attracting borrowers with competitive terms and
maintaining a profitable loan portfolio is an ongoing challenge.

Macroeconomic Factors

Economic conditions, such as inflation, unemployment, and GDP growth, were the issues
impacting borrowers' ability to repay loans. The loan department must navigate these
macroeconomic factors to make informed lending decisions.

Operational Efficiency

Ensuring efficient loan processing and administration was crucial. Inefficiencies in the loan
origination process or servicing which led to delays, increased costs, and potential customer
dissatisfaction

Default Management

Handling loan defaults is a significant challenge that affected the organization. Whereby
implementing effective strategies for loan recovery while minimizing financial losses requires a
comprehensive approach and sometimes legal proceedings

Cyber security Risk

As banking operations become more digitized, the loan department faces increased cyber
security threats. Protecting sensitive customer information and ensuring the integrity of loan-
related data are paramount concerns.

Changing Customer Expectations

Customer expectations for faster loan approvals and seamless experiences are rising. Adapting to
these changing expectations while maintaining prudent lending practices presents an ongoing
challenge for the loan department

4.2 MITIGATION STRATEGIES

Comprehensive Credit Risk Assessment

Implement robust credit risk assessment processes to thoroughly evaluate borrowers'

creditworthiness. This involves analyzing financial statements, collateral, and assessing the
borrower's ability to repay.

8
Diversification of Loan Portfolio

Avoid concentration risk by diversifying the loan portfolio across different industries and
sectors. This helps mitigate the impact of economic downturns affecting specific sectors.

Adherence to Regulatory Guidelines

Stay updated on regulatory changes and ensures strict compliance with banking regulations.
Establish a dedicated compliance team to monitor and implement necessary changes in loan
processes accordingly.

Interest Rate Hedging

Utilize interest rate hedging instruments to manage interest rate risk. This helps protect the bank
from adverse movements in interest rates, ensuring a more stable and predictable income from
loans.

Continuous Training and Skill Development

Invest in ongoing training for the loan department staff to keep them abreast of industry best
practices, new technologies, and changes in regulations. This enhances their ability to make
informed lending decisions.

Investment in Technology

Embrace technology for streamlined loan processing, automated risk assessment, and efficient
portfolio management. Implementing advanced analytics and artificial intelligence can enhance
decision-making processes.

Regular Stress Testing

Conduct regular stress tests on the loan portfolio to assess its resilience under adverse economic
conditions. This proactive approach helps identify potential weaknesses and allows the bank to
implement preemptive measures.

Customer Education

Educate customers about loan terms, conditions, and potential risks. Transparent communication
helps manage customer expectations and reduces the likelihood of disputes or dissatisfaction.

Operational Efficiency Improvements

Continuously evaluate and enhance operational processes to improve efficiency. This includes
automating routine tasks, reducing processing times, and minimizing errors in loan
administration.
9
Collaboration with Regulatory Bodies

Foster open communication and collaboration with regulatory bodies. This proactive engagement
helps the bank stay informed about regulatory changes and ensures a cooperative approach to
compliance.

Cyber security Measures

Implement robust cyber security measures to protect customer data and maintain the integrity of
the loan processing system. Regularly update security protocols to stay ahead of evolving cyber
threats.

10
 CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

5.1 INTRODUCTION
This chapter contains a conclusion that explains the contents of this report in general as well as
suggestions that I as a student would like to be worked on to help other students who will go to
the fieldwork

5.2 CONCLUSION
Field work is important that students should be helped to develop the attitude of mind ideas them
to make connections between study and relief, As a student, I have learned many new things,
such as how to face challenges in the office and how to set a schedule that allows me to carry out
my duties in the office. based on the responsibilities I performed while at CRDB bank, it is clear
that I have had an experience that I am exceptionally happy about.

11
 Appendix 1

References
CRDB Bank Plc ( 2023). "CRDB Bank Plc Annual Report for 12 Months Ended 31 December
2022"

IFC (16 June 2015). "International Finance Corporation Disclosures: The proposed project
involves an equity investment in CRDB Bank in Tanzania". International Finance Corporation
(IFC). Washington, DC, United States.

12