Rwanda: Lending activity of Rwanda banks to improve in 2017 - Governor

Kigali, Rwanda (PANA) - Rwanda will see a positive performance of banks' lending activity during 2017, despite challenges related to the growing rate of non-performing loans which inched up to 8.2% in June from 8.1% in March 2017.

The Governor of Central Bank John Rwangombwa, who was flanked by members of the  Monetary Policy Committee (MPC) responsible for formulation of national monetary policy,  explained on Wednesday that the country's financial sector had continued to see a healthy trend with increased assets in the second quarter of 2017.

"The banking system is more prepared and ready than ever before to support a growth of business compared with the previous years," he said.

According to official figures, total assets of the banking sub-sector increased by 13% (year-on-year) in June 2017 to FRW 2.6 trillion Rwandan francs (US$1 = 840 Rwandan Francs).

Official indicators also show that in the same period, the assets of the micro finance sub-sector increased by 8% to FRW 248 billion.

Reports indicate that in general, Rwanda's financial sector remains adequately capitalised with Capital Adequacy Ratio (CAR), a measure of a bank's capital, fixed at 20.7% as at end June 2017.

The institutions drafting the budgetary, fiscal and monetary policies have forecast an economic growth below 5% for 2017, which means larger room for business development.

"There is now an option to keep the non-performing loans under control while the banks' profitability will further improve," Rwangombwa told reporters in Kigali.
-0- PANA TWA/MA 28Sept2017

28 september 2017 06:51:02

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