After the unspoken tragedy Rwanda passed through during the 1994 Tutsi Genocide. People had to start over from the beginning, almost everything was destroyed, and the banking industry was also impacted. Most people at the time lacked access to money and those few who did distrusted banks regarding security and other associated issues. Then, the administration began re-establishing the nation through implementation and boosting financial stability. One area of focus was the banking industry because people were starting to rebuild themselves and might be looking to move and secure their finances. 

Since then, many new banks have been created in the country, especially commercial ones, with the assistance of the national bank of Rwanda, a central bank responsible for regulating and supervising the Rwanda banking sector. B.N.R. (National Bank of Rwanda) and that tragedy took control and set rules and regulations to govern the bank to ensure financial stability and promote growth in the sector. Currently, Rwanda has 16 commercial banks in operation inside the country; this includes local and international banks, microfinance, and savings and credit cooperatives(SACCO), which operate primarily in rural areas of Rwanda. 

There has been meaningful growth in the banking sector over the past years that are being used to measure the success of the country’s economy and stability. Profits, loans, and an increase in the deposit have been considered a measure of success. The total assets of the banking sector in Rwanda reached $4.5 billion in 2022, where net profit was over $82 million. Although the industry is evolving, there are still some challenges. Banking services remain mainly in the city, and financial services are limited in some rural parts of the country.

As mentioned before, Rwanda has 16 commercial banks. The three most significant are the Bank of Kigali, B.P.R. Bank, Rwanda, and I&M Bank. Most come to those positions because of a strong market position with relatively good business diversification. Others are an eco bank, G.T. Bank, Equity Bank, N.C.B.A., Access Bank, bank of Africa,cogebanquet, Owego, development bank of Rwanda, and microfinance banks A.B. Bank, sigma, and Unguka.

There are all contributing to the country’s financial stability by serving the community with the best services and having inclusion, and emphasizing financial literacy for all. Currently, there are working and promoting financial inclusion and digital bank services in partnership with the national bank of Rwanda. Now, 90% of the Rwandan population uses a smartphone, and people know digital services like mtn mobile money, airtel money, and electronic ones like mobile banking. All those services are used to send and receive money, pay bills, and make purchases quickly and easily. Statistics show that 36% of adults in Rwanda had access to banking services at the end of 2020; this means the number has increased as many people have adopted digitalization after covid 19 pandemic. 

One of the aims of financial stability was to promote the Rwanda economy. The government supported various initiatives to promote financial literacy and improve access to credit for small and medium-sized enterprises. Those forces contribute to the growth of banking and the country’s economic development.

Other financial institutions can facilitate and assist people in the access to finance and promote financial sector development. SACCO and B.D.F. (Business and product fund) provide finance and technical assistance to those with a small business by teaching them how to get funds for their business and advice to help their business be more competitive. SACCO is also helping a lot of different people, mainly rural to educate them on how to save and invest for their future needs, they also provide loans, and their client pays for the lowest rate because they think most of the families in rural areas doesn’t have a good standard of living. 

The banking sector in Rwanda has grown significantly, where the promotion of financial literacy and financial inclusion leads to the growth of the Rwanda economy. The country’s G.D.P. has increased at the average rate of 7.5% over the past decade, and the poverty level has increased, and now banks become trustworthy. Everyone can save, invest and spend without hesitation, knowing their money is secured.

In conclusion, Rwanda worked hard for the development they have currently, and its effort to promote financial stability and growth, combined with the emergence of digital banking services and initiatives to promote financial inclusion, has contributed to the growth of the banking sector and the overall economic development of the country. They are still putting much effort into promoting financial literacy and looking forward to growth and prosperity.