Rwanda - Banking SystemRwanda - Banking System
Rwanda’s banking system is highly concentrated, but increasingly competitive as foreign banks increasingly look to enter the country. Around 76 percent of all bank assets are held by five of the largest commercial banks (Bank of Kigali, BPR Atlas Mara, I&M Bank, COGEBANQUE, and Equity Bank). The largest, partially state-owned Bank of Kigali (BoK), holds more than 30 percent of all assets. Currently, the banking sector is stable and well capitalized with an industry capital adequacy ratio of 21.4 percent per cent, above the 15 percent central bank regulatory requirement. Rwanda’s banking industry is composed of: commercial banks, development banks, cooperative banks, and microfinance banks. As of July 2018, 16 banks were registered with the Rwandan National Bank (BNR): 11 commercial banks, three micro-finance banks, one development bank, and one cooperative bank. There are 439 Savings Credit and Co-operatives (SACCOs), and 20 limited liability microfinance institutions. A list of licensed banks can be found at: https://www.bnr.rw/index.php?id=174. Licensing Requirements for banks can be found at: https://www.bnr.rw/index.php?id=278
Local banks operate in both local currency and dollar-based accounts. While most suppliers are paid through wire transfers to their domicile bank accounts, many investors eventually open a local account at one of the main local commercial banks.
Starting in 2008, the Rwandan Central bank fixed a capital requirement of five billion Rwanda Francs ($5.8 million) for commercial banks. All commercial banks have international correspondent banks operating in major cities of the world. ATMs are available, but limited with only 383 in all of Rwanda. Commercial banks are authorized to provide loans in foreign currency. The government has implemented a financial sector development plan that improves access to financial services and competition in the banking sector and in micro-finance. The IMF gives BNR, Rwanda's central bank, high marks for its effective monetary policy.
The private sector has limited access to credit instruments. Most Rwandan banks are conservative, risk-averse, and trade in a limited range of commercial products, though additional products are becoming available as the industry matures and competition increases. Credit cards are not used extensively, except in major hotels, grocery stores, and larger restaurants that cater to tourists. The number of domestically-issued credit cards in the country increased from 516 in 2011 to 3,638 in 2018. The number of debit cards issued in the country has grown more than six-fold since 2011, but remains relatively low at 883,755. In December 2011, Visa International opened an office in Rwanda and announced a partnership with the central bank through which the company is working to expand electronic payment services throughout Rwanda. While the use of credit cards is becoming more popular, Rwanda, especially outside of Kigali, remains primarily a cash-based or mobile cash money-based economy. In 2015, 49 percent of ATMs and 86 percent of point of sale machines were located in Kigali.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Local banks operate in both local currency and dollar-based accounts. While most suppliers are paid through wire transfers to their domicile bank accounts, many investors eventually open a local account at one of the main local commercial banks.
Starting in 2008, the Rwandan Central bank fixed a capital requirement of five billion Rwanda Francs ($5.8 million) for commercial banks. All commercial banks have international correspondent banks operating in major cities of the world. ATMs are available, but limited with only 383 in all of Rwanda. Commercial banks are authorized to provide loans in foreign currency. The government has implemented a financial sector development plan that improves access to financial services and competition in the banking sector and in micro-finance. The IMF gives BNR, Rwanda's central bank, high marks for its effective monetary policy.
The private sector has limited access to credit instruments. Most Rwandan banks are conservative, risk-averse, and trade in a limited range of commercial products, though additional products are becoming available as the industry matures and competition increases. Credit cards are not used extensively, except in major hotels, grocery stores, and larger restaurants that cater to tourists. The number of domestically-issued credit cards in the country increased from 516 in 2011 to 3,638 in 2018. The number of debit cards issued in the country has grown more than six-fold since 2011, but remains relatively low at 883,755. In December 2011, Visa International opened an office in Rwanda and announced a partnership with the central bank through which the company is working to expand electronic payment services throughout Rwanda. While the use of credit cards is becoming more popular, Rwanda, especially outside of Kigali, remains primarily a cash-based or mobile cash money-based economy. In 2015, 49 percent of ATMs and 86 percent of point of sale machines were located in Kigali.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.