Rwanda's financial sector to remain sound, stable in 2018: central bank

Source: Xinhua| 2018-11-01 06:53:21|Editor: Mu Xuequan
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KIGALI, Oct. 31 (Xinhua) -- Rwanda's financial sector is expected to remain sound and stable throughout 2018, the central bank said on Wednesday.

Banks and microfinance institutions of Rwanda hold sufficient capital and liquidity buffers above prudential requirement and the solvency and profits of private insurers continue to improve, said National Bank of Rwanda in a statement, citing an assessment by the bank's Financial Stability Committee.

By the end of September 2018, the total capital adequacy ratio for the banking and microfinance sectors stood at 22.6 percent and 34.8 percent respectively, compared to 15 percent prudential requirement, said the bank.

The liquidity coverage ratio, the main indicator of liquidity position of banks, stood at 306 percent against 100 percent prudential requirement, it said.

On the other hand, the liquidity ratio in the microfinance sector stood at 96.4 percent against the 30 percent prudential requirement, it added.

The insurance sector held sufficient capital relative to risks underwritten, it said.

The aggregate solvency levels of private insurers stood at 155 percent in September 2018 compared to 159 percent level of September 2017, the bank said.