Financial Sector

Rwandan financial sector is narrow and shallow and comprises of insurance  and banking services. The banking sub-sector includes commercial banks, development banks and microfinance institutions.

The banking sub-sector has tremendous grown over the past 5 years including attractions of multinational banks and foreign equity. The market capitalization of the banking sub sector is US$200 million supporting US$1 billion in assets.

Role of financial sector

  • Source of government revenue through taxes paid by different financial institutions
  • Financial sector is a source of employment to the people in the country
  • Financial sector’s ability to play its role of mobilizing savings, conducting effective intermediation among the people in Rwanda
  • The sector create appropriate environment, developing institutions and fostering market incentives for the development of long-term financial instruments
  • Financial institutions help in reducing risks for instance banks keep people’s money hence avoiding theft
  • The sector also contributes to the process of economic development of the country through advancing loans to different sectors and individuals

Regulatory Framework in the Financial Sector   

The Ministry of Finance and Economic Planning (MINECOFIN)
The Ministry of Finance and Economic planning is responsible for sustainable growth, economic opportunities and living standards of all Rwandans. The ministry is also responsible for establishing and monitoring the highest standards of accountability and transparency in public finance management.

The National Bank of Rwanda
The National Bank of Rwanda (BNR) is the sole regulator and supervisor for the entire financial sector.  BNR is the regulatory and supervisory authority of the banking and microfinance systems, non-bank financial institutions as well as the payment systems.

National Insurance Commission
The Commission was established in 2002 with a role of supervising and regulating the insurance sector in Rwanda.

Monetary Policy Framework
The goal of monetary policy is set out in the National Bank of Rwanda (BNR) Law which requires the BNR to conduct monetary policy in a way to deliver price stability and in low inflation environment. Law no 55/2007 of 30/11/2007 governing the Central Bank of Rwanda assigns to the BNR the responsibility of formulating and implementing monetary policy

Legal framework for microfinance sector
The regulator is for supervising microfinance activities was based on the mandate of the National Bank of Rwanda under the Law no 55/2007 of 31/11/2007 governing the Central Bank of Rwanda.

The Supervision of Non Bank Financial Institutions
The NBR established the Supervision of Non Bank Financial Institutions Department (SNBFID) in 2007 in line with its new mandate under Article 6 of Law 55/2007 of 30/11/2007 governing the Central Bank of Rwanda to supervise insurance companies, social security institutions, collective placement companies and pension funds institutions.

Rwanda Cooperative Agency (RCA)
RCA is a public institution in charge of promotion, registration and regulating of Cooperatives in the Country that is SACCOs.

Financial Sector of Rwanda has been summarised to include the following

Sector Profile

Financial Institutions

Stock Market

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