The revelations were made on Wednesday following the National Bank of Rwanda (BNR) Financial Stability Committee (FSC) meeting that was held on Tuesday, October 30 to assess the performance of the financial sector as at the end of September 2018.
The committee noted that Rwanda’s financial sector remains sound and stable and that banks and MFIs hold sufficient capital and liquidity buffers above the prudential requirements while the solvency and profits of private insurers continue to improve.
The Financial Stability Committee observed that the non-performing loans in banks reduced from 7.7 percent in September 2017 to 7.2 percent in September this year while in the microfinance sector, the ratio reduced from 8 to 6.8 percent in the same period.
According to BNR, the improved economic performance and the clean-up of bad loans supported in the reduction of non-performing loans.
Assets of the financial sector also continue to expand. Total assets of the banking sector increased by 10.4 percent to Frw2,905 at the end of December 2018, though it’s lower than the 17.1 percent growth registered in September last year.
During the same period, the microfinance sector assets increased by 12.3 percent to Frw272 billion higher than the 9.5 percent growth observed in the previous year.
Insurance sector assets increased by 13 percent to Frw 437 billion, the same growth registered last year while the pension sector assets increased by 8 percent to Rwf747 billion, lower than the 15 percent recorded in September 2017.
According to the statement signed by the Governor of Rwanda National Bank (BNR), nad Chairman of the Financial Stability Committee (FSC), John Rwangombwa the improved profits of the financial sector mainly mirrored the improved economic performance in the first six months of 2018 and efficiency gains driven by improved revenues and rationalization of costs.
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