Analysis of Financial Performance of Commercial Banks in Rwanda

Master's Thesis from the year 2015 in the subject Economics - Finance grade: Upper level division2 course: Thesis language: English abstract: The objective of this study is to analyze the performance of two selected commercial banks over a period of six years (2008-2013) in the Rwandan banking sector. For this purpose CAMEL approach has been used and it is established that I&M Bank and BPR are at the top of the list with their performances in terms of soundness being the best but the commercial bank like BPR has taken a backseat and display low economic soundness in comparison. The study found that overall bank performance increased considerably in the first three years of the analysis. A significant change in trend is noticed at the onset of the global financial crisis in 2007 reaching its peak during 2008-2009. This resulted in falling profitability low liquidity and deteriorating credit quality in the Rwandan Banking sector in general and BPR and I&M Bank particularly.