The National Bank of Rwanda published the outcome of its Financial Stability Committee’s quarterly meeting held on 18 August 2025, concluding that Rwanda’s financial system remains stable, resilient and growing despite rising economic and financial vulnerabilities. The assessment points to strong capitalisation and liquidity across key parts of the sector, alongside continued support to the economy. At end-June 2025, banks and microfinance institutions reported Capital Adequacy Ratios of 21.6% and 34.7% respectively, above the 15% regulatory minimum, while the insurance sector’s solvency ratio stood at 215%, above the 100% minimum. Liquidity indicators also exceeded minimum requirements, including a bank Liquidity Coverage Ratio of 289% (minimum 100%) and an MFI liquidity ratio of 73.8% (minimum 30%), with private insurers reporting a liquidity ratio of 109% (minimum 100%). Financial sector assets grew 22.6% year-on-year to FRW 14.3 trillion, lifting assets-to-GDP to 71.3% in June 2025 from 65.6% a year earlier; loans accounted for 49.9% of bank assets and 64.5% of MFI assets. Payment systems were described as stable with minimal disruptions, while digital activity accelerated, including a 47% rise in person-to-person transactions to FRW 3,095 billion and an increase in total retail electronic payments to 316% of GDP (from 265% at end-June 2024); eKash recorded 20 participating institutions, 2.1 million active users and a 301% increase in transaction value to FRW 37.7 billion. The release also flagged growing fraud incidents linked to phishing, credential compromise and social engineering in digital channels, with ongoing work on stronger customer authentication, awareness, real-time monitoring and sector-wide information sharing. Looking ahead, the committee expects the sector to remain sound, while highlighting downside risks including higher global government debt and funding costs, credit risk and operational risks associated with increasing digitisation. The National Bank of Rwanda indicated it will continue working with stakeholders on prudent risk management and timely implementation of policy measures to safeguard financial stability.
National Bank of Rwanda 2025-08-21
National Bank of Rwanda Financial Stability Committee concludes sector remains stable with assets reaching FRW 14.3 trillion
The National Bank of Rwanda's Financial Stability Committee reported that Rwanda's financial system remains stable and resilient, with strong capitalisation and liquidity despite rising vulnerabilities. As of June 2025, banks and microfinance institutions exceeded regulatory capital and liquidity requirements, while financial sector assets grew 22.6% year-on-year. The committee noted increased digital activity and flagged rising fraud incidents, emphasizing ongoing efforts in risk management and policy implementation to maintain stability.