Finanial Systems in Rwanda
Financial System in Rwanda
Banking service operations date back in early 1960, originating from the oldest banks of BCR and Bank of Kigali respectively. The National Bank of Rwanda (NBR) also known as Banque Nationale du Rwanda’s (BNR) is the regulatory and supervisory Authority of the banking and microfinance systems, non-bank financial institutions (including insurance industry, pension schemes) as well as the payment systems. The Bank operates also the central security depository.
Latest figures from The BNR activity report January-June 2012 indicate that the Rwandan banking system is comprised of nine commercial banks and five specialized institutions (including 3 microfinance banks, 1 development bank and 1 cooperative bank) and held around 70 % of the total assets of the Rwandan financial sector.
The microfinance sector is composed of 11 limited companies microfinance institutions and 486 SACCOs. The sector continued to demonstrate good performance during the period under review mainly driven by the growth of UMURENGE SACCOs. Some of the other financial players in the Rwandan market are listed below:
Non-Bank Financial
The non-bank financial institutions are composed of insurance and pension sectors. The National Bank of Rwanda is mandated to regulate and supervise these institutions to protect interests of policy holders and pensioners by ensuring that these institutions are financially sound and stable.
Insurance sector
The insurance sector is composed of 9 insurers of which seven are private and two are public, 5 insurance brokers, 120 insurance agents and 8 loss adjusters. The insurance sector in Rwanda is developing as depicted by insurance penetration which is about 7% though still less than the 10% for middle income economies.
Pension sector
The Pension Sector is comprised of the Rwanda Social Security Board (pension branch) or National Social Security Fund and about 40 private occupational pension schemes administered by insurance companies. The
Banking service operations date back in early 1960, originating from the oldest banks of BCR and Bank of Kigali respectively. The National Bank of Rwanda (NBR) also known as Banque Nationale du Rwanda’s (BNR) is the regulatory and supervisory Authority of the banking and microfinance systems, non-bank financial institutions (including insurance industry, pension schemes) as well as the payment systems. The Bank operates also the central security depository.
Latest figures from The BNR activity report January-June 2012 indicate that the Rwandan banking system is comprised of nine commercial banks and five specialized institutions (including 3 microfinance banks, 1 development bank and 1 cooperative bank) and held around 70 % of the total assets of the Rwandan financial sector.
The microfinance sector is composed of 11 limited companies microfinance institutions and 486 SACCOs. The sector continued to demonstrate good performance during the period under review mainly driven by the growth of UMURENGE SACCOs. Some of the other financial players in the Rwandan market are listed below:
Non-Bank Financial
The non-bank financial institutions are composed of insurance and pension sectors. The National Bank of Rwanda is mandated to regulate and supervise these institutions to protect interests of policy holders and pensioners by ensuring that these institutions are financially sound and stable.
Insurance sector
The insurance sector is composed of 9 insurers of which seven are private and two are public, 5 insurance brokers, 120 insurance agents and 8 loss adjusters. The insurance sector in Rwanda is developing as depicted by insurance penetration which is about 7% though still less than the 10% for middle income economies.
Pension sector
The Pension Sector is comprised of the Rwanda Social Security Board (pension branch) or National Social Security Fund and about 40 private occupational pension schemes administered by insurance companies. The
References: