Rwanda recorded 39 percent growth in the number of customers taking up loans with commercial banks.
Rwanda recorded a 39 percent growth in the number of customers taking up loans with commercial banks in 12 months to June 30, 2023, supported by fresh measures by the central bank to accelerate financial inclusion in an economy weighed down by the informal and traditional methods of saving money.
Disclosures by the National Bank of Rwanda (NBR) indicate that the number of borrowers in banks grew considerably to 949,778 in June 2023 from 683,851 in June 2022, while those in microfinance institutions ( MFIs) and the Savings and Credit Co-operative Societies (Saccos) declined by 15 percent to 306,186 from 359,741 in the same period.
The banking regulator also notes that the number of depositors in banks increased by 40 percent to 4,099,866 from 2,921,349 while client accounts in banks and MFIs increased by 21 percent and 15 percent respectively during the period under review.
“Overall, there has been a significant increase in both account penetration and access,” the bank says.
The bank through its latest annual report for the 2022/2023 financial year attributes the increased number of bank borrowers to increased awareness campaigns, introduction of new products and automation of banking services, which has brought on board new customers in the banking sector.
“The financial system in Rwanda remained stable and sound throughout the fiscal year of 2022/23,” says NBR.
“This was due to the various tools and measures that the bank implemented that include putting in place regulations, conducting supervision and oversight, and creating frameworks to prevent and mitigate systemic risks that could lead to financial crisis and disruptions in the broader economy.”
Regionally, Kenya has made progress in the reach of formal accounts, with 84 percent of Kenyans now having an account with a formal financial institution, according to FSD Kenya, while in Tanzania the proportion of adults with access to and usage of formal financial services increased from 86 percent and 65 percent in 2017 to 89 percent and 76 percent in 2023 respectively, according to the Bank of Tanzania (BoT).
In Uganda, 66 percent of the adult population kept their savings at formal deposit-taking institutions, including banks, microfinance institutions and savings and credit institutions in by 2021 , according to Uganda’s National Financial Inclusion Strategy(2023-2028).
According to the World Bank, financial inclusion has risen sharply in Rwanda, with a notable increase in the use of bank accounts for saving from 13 to 21 percent, underscoring significant transitions from informal to formal savings methods, and the introduction of long-term savings programmes.
Source link : https://www.theeastafrican.co.ke/tea/business/rwanda-records-39pc-rise-in-new-bank-borrowers–4605060?view=htmlamp
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Publish date : 2024-04-27 07:00:00
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