The study looked at how Tanzanian banks manage their money to reduce risks. They found that when banks take more risks, they increase their capital to meet legal requirements. Large banks tend to improve their capital when they are close to the minimum required by law. Also, when banks make more money, they keep some to increase their capital. This helps them avoid penalties for not meeting the minimum capital requirements. In simple terms, Tanzanian banks adjust their capital levels based on how risky their actions are and how much money they make.