At that time, the main objective of TIB was to provide "medium and long-term loans to investors in commercial agriculture, manufacturing, processing, construction, transport, tourism and mining sectors".

However, due to economic hardships, including a war with Idi Amin of neighboring Uganda and foreign currency exchange fluctuations within the Tanzanian economy, the bank became unable to service its financial obligations.

To mitigate financial losses, TIB resorted to making short-term loans and to function like a commercial bank.

[4][5] Over time, the Tanzanian government, the sole shareholder in TIB, re-capitalized the bank, re-vamped its strategic development plans and re-structured its management.

[6] As of December 2010[update], TIB had a total asset base in excess of TSh 93 billion (US$62 million).