alexa Abstract | The Role of Risk Management on Financial Performance of Banking Institutions in Rwanda
ISSN: 2151-6219

Business and Economics Journal
Open Access

OMICS International organises 3000+ Global Conferenceseries Events every year across USA, Europe & Asia with support from 1000 more scientific Societies and Publishes 700+ Open Access Journals which contains over 50000 eminent personalities, reputed scientists as editorial board members.

Open Access Journals gaining more Readers and Citations

700 Journals and 15,000,000 Readers Each Journal is getting 25,000+ Readers

This Readership is 10 times more when compared to other Subscription Journals (Source: Google Analytics)

Research Article Open Access

Abstract

The aim of this study is to assess the role of risk management on financial performance in Rwanda institutions: Case study of Unguka bank Ltd undertaken within period 2012-2016. The data were collected through a questionnaire designed for 30 staff’s members of Unguka bank Ltd where both quantitative and qualitative techniques were employed. The interviews were conducted with key informants from like the Unguka bank Ltd staffs. Findings shows that the determinants of risk management in Unguka bank Ltd are credit risk, operational risk, and interest rate and liquidity risk are the determinants of risk management. The results shows that Unguka bank Ltd is profitable during the covered period because the standard ratio of return on asset is 1% may factors are the cause of that profitability but the quality service are the main cause of the increase of its profitability. The researcher also found out that there is a very strong relationship between risk management and financial performance. The role of risk management in Unguka bank Ltd is to improve profitability which accounted for 43.3% of the responses. It was found that the four independent variables moderately predict the performance of Unguka bank Ltd that means the model explains 69.5% the variance on the performance of Unguka bank Ltd. The results confirm the hypothesis because the linear regression F-test results (F = 8.741; and 5df) are significant at p < 0.05. The study conducted a multiple regression analysis so as to determine the regression coefficients (β) which shows that β0=10138 and which means that all the independent variables have a significant contribution to Unguka bank Ltd-Nyarugenge branch. After analysis, it is recommended that Unguka bank Ltd should emphasize more on training its personnel continuously particularly those in risk management in order to enable them apply accepted tools of risk management in a professional manner and to enable them give relevant and reliable answers to questions credit risk management.

To read the full article Peer-reviewed Article PDF image | Peer-reviewed Full Article image

Author(s): Harelimana JB

Keywords

Risk management, Financial performance, Accounting Review, International Business, Indexation, Profitability, Time Series, Panel Data, Empirical Analysis, Stock Market Returns, Human Capital, Monetary Policy , Small Firms, Business Cycle, Banking Research Studies, Capital Structure, Economics Studies, Financial plan, Fiscal and tax policies , Avenues of Investment, Wealth Management, Business Theory, Organizational studies, Parameter Estimation

Share This Page

Additional Info

Loading
Loading Please wait..
 
 
 
Peer Reviewed Journals
 
Make the best use of Scientific Research and information from our 700 + peer reviewed, Open Access Journals
International Conferences 2017-18
 
Meet Inspiring Speakers and Experts at our 3000+ Global Annual Meetings

Contact Us

 
© 2008-2017 OMICS International - Open Access Publisher. Best viewed in Mozilla Firefox | Google Chrome | Above IE 7.0 version
adwords