According to BNR, microfinance sector rebounded from loss posting and improved by Rwf0.12 billion to Rwf3.3 billion.
This was announced following the Quarterly Financial Stability Committee Meeting which assessed the performance of the financial sector as at end June 2018 as well as potential risks that could affect its stability.
“The committee noted that the financial sector remains sound and stable. The financial soundness indicators for banks, microfinance institutions and insurance companies are within the prudential requirements,” a statement by Central Bank signed by BNR Governor John Rwangombwa says.
According to Central Bank, the payment systems continued to perform in a safe and efficient manner.
BNR says that the asset quality for banks and microfinance institutions improved during the first half of 2018.
“The non-performing loan ratio in banks declined from 8.2 per cent in June 2017 to 6.9 percent in June 2018,” BNR says.
In microfinance sector non-performing loan ratio dropped from 12.3 percent to 8 percent.
Central Bank says that the growth in profits was driven by improved loan recoveries and a slower growth in expenses compared to incomes for both banks and microfinances.
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