During the year ending June 2011, deposits and loans held by savings and credit cooperatives (SACCOs) in Rwanda reportedly increased from USD 35 million to USD 60 million and USD 51 million to USD 54 million respectively. Finance Minister John Rwangombwa was quoted as having said that SACCOs were not only improving access to finance but also boosting wholesale deposits within the banking industry. He reportedly said, “We expect to see SACCOs improve lending to the population and small investments around the country. SACCOs not only give small loans to small investors at their level but they also create big deposits that are given to big investors.” [1]
To minimize risk and improve governance, the National Bank of Rwanda (BNR, in French), has set up a technical control unit at each district to monitor and supervise the operations of SACCOs. It is also working on creating the infrastructure to enable SACCOs to submit daily reports [1].
Approximately 14 percent of the Rwandan population currently has access to formal banking products. A further 7 percent use other formal products such as loans from microfinance institutions (MFIs) or insurance products, and 27 percent only use informal products [2].
By Kristha Abores, Research Associate
About National Bank of Rwanda (BNR):
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 1.65 billion).
Sources and Additional Resources:
[1] The East African: “Rwanda saccos to offer loans, take deposits,” http://www.theeastafrican.co.ke/business/Rwanda+saccos+to+offer+loans++take+deposits/-/2560/1280118/-/p5byqp/-/
[2] IMF: “Rwanda: Financial System Stability Assessment,” http://www.imf.org/external/pubs/ft/scr/2011/cr11244.pdf
MicroCapital.org article, July 28, 2011, “MICROCAPITAL BRIEF: 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 Universe Profile: National Bank of Rwanda (BNR), 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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