MICROCAPITAL BRIEF: Microfinance Assets in Rwanda Grow 12.1% to $78.6m

According to the National Bank of Rwanda (NBR), assets in the microfinance sector grew 12.1 percent from RWF 43 billion (USD 70.1 million) in 2010 to RWF 48.2 billion (USD 78.6 million) in December 2011 due to increases in both deposits and loans. Deposits rose 4.3 percent from RWF 23 billion (USD 37 million) to RWF 24 billion (USD 39.1 million), while loans grew by 14.4 percent from RWF 30.5 billion (USD 49.7 million) to RWF 34.9 billion (USD 56.9 million). Although increased regulation and supervision has accompanied this growth, non-performing loans (NPLs) increased by 16.7 percent from RWF 3.6 billion (USD 5.8 million) to RWF 4.2 billion (USD 6.8 million), raising concerns of “weakness in credit management” [1] [2].

As of 2010, the eight Rwandan microfinance institutions submitting data to the US-based nonprofit Microfinance Information Exchange (MIX) report aggregate loans of USD 18.4 million, deposits of USD 8.4 million, approximately 82,000 depositors and 68,800 active borrowers.

By Brendan Millan, Research Associate

About National Bank of Rwanda (NBR): Founded in 1964, the National Bank of Rwanda (BNR, in French) operates as the central bank for the country. Its purpose is to define and implement monetary policy, mint currency and supervise and regulate the foreign exchange market and financial institutions. It also operates the Securities Exchange of Rwanda. In March 2011, BNR reported total assets of RWF 985 billion (USD 1.7 billion).

Sources and Resources:

[1] National Bank of Rwanda (NBR) Press Release: “Monetary Policy and Financial Stability Statement”, http://www.bnr.rw/docs/publicnotices/February%202012%20Monetary%20Policy%20Statement%20final%20(4).pdf

[2] East African Business Week: “Rwanda’s Micro-finance Assets Up” by Bosco Hitimana. http://www.busiweek.com/index.php?option=com_content&view=article&id=2425:rwandas-micro-finance-assets-up-&catid=107:rwanda&Itemid=1367

MicroCapital.org Article, July 28, 2011, “National Bank of Rwanda (NBR) Incorporates Microfinance Programs as National Strategy to Achieve 80 Percent Access to Finance Target by 2017” https://www.microcapital.org/microcapital-brief-national-bank-of-rwanda-nbr-incorporates-microfinance-programs-as-national-strategy-to-achieve-80-percent-access-to-finance-target-by-2017/

MicroCapital.org Article, June 12, 2011, “Association of Microfinance Institutions in Rwanda (AMIR) Cautions Microfinance Institutions (MFIs) Against ‘One Size Fits All’ Approach, Particularly in Rural Areas”, https://www.microcapital.org/microcapital-brief-association-of-microfinance-institutions-in-rwanda-amir-cautions-microfinance-institutions-mfis-against-%E2%80%9Cone-size-fits-all%E2%80%9D-approach-particularly-in-rural-area/

MicroCapital.org Article, May 31, 2011, “Rwanda’s Bank of Kigali Announces Three Microfinance Products Targeting Rural Financial Inclusion”, https://www.microcapital.org/microcapital-brief-rwanda%E2%80%99s-bank-of-kigali-announces-three-microfinance-products-targeting-rural-financial-inclusion/

MicroCapital Universe Profile: National Bank of Rwanda (NBR), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+National+Bank+of+Rwanda

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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