The National Bank of Rwanda published the Financial Stability Committee’s assessment of Rwanda’s financial sector for the third quarter of 2025, concluding that the system remained stable and resilient despite risks from trade policy shifts and geopolitical tensions. The review highlights capital and liquidity buffers above regulatory requirements, healthy asset quality, and payment systems operating smoothly. At end-September 2025, banks and microfinance institutions reported capital adequacy ratios of 21.4% and 35.3%, while private insurers’ solvency stood at 254%. Banks’ liquidity coverage ratio was 302.9%, with microfinance institutions’ liquidity at 65% and insurers’ liquidity at 115%. Total financial sector assets rose 24.3% to FRW 15.3 trillion, alongside growth in new bank lending to FRW 1.9 trillion (+15.3%), outstanding bank loans to FRW 5.3 trillion (+22.6%), and microfinance credit to FRW 702 billion (+21%). Non-performing loan ratios remained below the National Bank of Rwanda’s 5% benchmark at 2.6% for banks and 2.9% for microfinance institutions, although credit concentration was flagged for close monitoring. Private insurers’ premiums increased 18.5% to FRW 183.4 billion, net underwriting income eased to FRW 4.1 billion (from FRW 5.4 billion in Q3 2024) amid higher medical claims, and investment income rose 14.4% to FRW 22.8 billion; pension assets expanded to FRW 2.6 trillion (+33%), while Ejo Heza assets reached FRW 84 billion (+29.2%). Operational losses were described as minor, and joint National Bank of Rwanda and National Cyber Security Authority inspections assessed banks’ cybersecurity and operational risk compliance, with insurance and microfinance institutions undergoing the same assessment. The Committee indicated it will continue monitoring global and domestic developments, coordinate prudential policies to safeguard resilience, and maintain vigilance over payment system continuity and fraud risks through ongoing sector coordination.
National Bank of Rwanda 2025-11-20
National Bank of Rwanda Financial Stability Committee reviews Q3 2025 conditions and reports banks’ CAR at 21.4% and LCR at 302.9%
The National Bank of Rwanda's Financial Stability Committee reported that Rwanda's financial sector remained stable and resilient in Q3 2025, despite trade policy shifts and geopolitical tensions. Key indicators showed capital adequacy ratios of 21.4% for banks and 35.3% for microfinance institutions, with a liquidity coverage ratio of 302.9% for banks. The Committee will monitor global and domestic developments to ensure resilience and payment system continuity.