Rwanda's financial system 'showing signs of improvement'

Oct 07, 2010

There have been significant improvements in Rwanda's financial sector over the past 12 months, despite the fragility of the global economic system as a whole.

This is according to Governor of the country's central bank Francois Kanimba, who said in an interview with Business Times Rwanda currently has the "extremely important" advantage of a favourable average capital adequacy ratio, which is presently exceeding 15 per cent. "Banks now have quite a significant buffer to face any significant shock that would create a major potential loss," he explained.

Mr Kanimba noted risk aversion within the nation's financial sector has increased, which prompted a dip in credit availability as institutions seek to recover non-performing loans that were granted before the end of last year. Changes have also been made to the process for obtaining credit secured against real estate, Chairman of the Rwandan Bankers Association Steve Caley recently told the news source.

He explained individuals planning on doing this must now provide more paperwork, such as any mortgage agreements and written consent from a spouse if the couple have joint ownership of their property.