News Column

Slight Fall in Rwanda Non-Performing Assets

July 14, 2014

Rwanda's financial sector fared well in the first quarter of calender 2014 reflected by borrowers living up to their loan obligations.

Presiding over a news conference recently National Bank of Rwanda, Governor John Rwangombwa said, "In terms of asset quality measurement: the banking sector's non performing ratio (NPL ratio) slightly improved from 6.9% end December 2013 to 6.7% for end March 2014. For the microfinance sector, the NPL ratio stood at 7.9% compared to 6.8% realized in December 2014."

He said in a statement by the end of March the banking sector's capital adequacy ratio (measure for ability to absorb shocks) stood at 22.6% (above the 15% prudential requirement)

The Microfinance sector recorded capital adequacy ratio of 33.1% (against the 15% prudential requirement).

Rwangombwa said the insurance sector also remains solvent as seen by the solvency ratio of 213% against the 100% requirement.

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Source: AllAfrica

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