National Bank of Rwanda Financial Stability Committee finds the financial system stable as assets rise 23.2% to FRW 13.6 trillion

The National Bank of Rwanda published the outcomes of its Financial Stability Committee’s quarterly assessment, concluding that Rwanda’s financial system remained stable and continued to grow in the first quarter of 2025 despite rising global risks. Capital and liquidity metrics were reported as comfortably above supervisory minima, with banks’ capital adequacy ratio at 22.0% and microfinance institutions’ at 35.5% against a 15% requirement. Banks’ liquidity coverage ratio stood at 337.4% against a 100% requirement, while microfinance institutions’ liquidity ratio was 68% against a 30% requirement; insurers’ solvency ratio was 199% and liquidity 109%, both above 100% requirements. Total financial sector assets increased by 23.2% to FRW 13.6 trillion, with banks accounting for about 68% of the sector; bank new loan approvals reached FRW 643 billion in the quarter, up from FRW 498 billion a year earlier, while non-performing loan ratios were 2.7% for banks and 4.3% for microfinance institutions, below a 5% benchmark. The update also highlighted continued growth in electronic payments to 334% of GDP by end-March 2025 (from 214% a year earlier) and the expansion of the interoperable eKash platform to wallet-to-bank transactions, with 1.9 million active users and 17 participating institutions. Looking ahead, the Committee flagged potential risks from higher borrowing costs and falling asset prices linked to global uncertainty and increased investor risk aversion, as well as the possibility that high market liquidity could shift investment patterns. The National Bank of Rwanda indicated it will continue monitoring these risks with other stakeholders and take action as needed to preserve financial stability.