No abstract

Despite banking services in Rwanda have low levels of penetration, it is important for banks to focus on providing quality service to their customers. This is due to the effect it has on customer satisfaction and consequently on customer retention. The purpose of the research is to investigate the satisfaction of banking customers in Rwanda with regard to financial services received. This is done through investigation their perceptions of service quality and satisfaction. Little published research among these groups of consumers has been undertaken, making the findings important for the sector in Rwanda. Use was made of a quantitative study using a SERVPERF questionnaire adapted for the Rwandan context to collect data from 156 respondents. Statements on the dimensions of service quality and customer satisfaction were measured using a 7 point Likert scale. The results of study show that the bank's physical environments and facilities are conducive to delivering good service, and the customers are satisfied with the Tangible aspects associated with the service and that they are prepared to reflect this satisfaction in their behaviour. It is recommended that the bank take note of these findings, specifically as they reflect some differences among different groups of customers and incorporate them into future marketing strategies.

The study analyse the factors that causes loan defaults within Microfinance institutions learning from the perception of entrepreneurs in Rwanda. Explanatory research design was used. Data was collected from primary and secondary sources using questionnaire and documentation. The study population included microfinance institutions within Kigali. The target population included MSEs that are classified within a portfolio of nonperforming loans. Structural Equation Modeling (SEM) was used to analyse the correlation between the study variables. The findings from the survey showed that loan delay, loan shortage, loan deviation, interest rate, improper management, business environment have a significant impact on nonperformance. The researcher recommended that entrepreneurs should be trained on financial discipline and how to manage the loan finance

The key objective of Microfinance Institutions (MFIs), like any other business organization is to maximize profits. However, the increased rates of non-performing loans (NPLs) hinder microfinance institutions from achieving their main objective.  This study aimed to examine the effect of credit risk analysis on the quality loan portfolio of Microfinance Institutions in Rwanda. The credit risk analysis was measured using collection policy, loan policy and client credit appraisal. On the other hand, the loan quality portfolio was measured by Non-performing Assets (NPAs).  A descriptive research design was used to describe the relationship between the study variables. A total of 30 respondents consisting of managers and credit officers were purposively selected. Data was collected from primary and secondary sources using questionnaires and financial reports.  Data was analyzed by using both descriptive and inferential statistics. The results from the survey indicated that all aspects of credit risk management have got an effect on the quality loan portfolio, as evidenced by an R-square of 34.8% and a P-value of 0.01. Findings further revealed that poorly formulated Credit policy and lack of monitoring of loans through inadequate loan appraisal and loan collection procedures were identified as the main causes of Non-Performing Loans (NPLs), at 43.3%; 66.7%; 53.3%, respectively, further evidenced by the P-values of 0.01,0.012 and 0.000. The researchers further found that management decisions, conditions, and procedures have the greatest effect on non-performing loans at M=4.30; SD .887; and M=4.23; SD= .679, respectively. To address the danger of non-performing loans in the MFIs, the following measures were recommended to the management of COPEDU LTD. Effective monitoring of loans, credit training programs, tight security requirements and seeking the services of credit reference bureau and committed debt collectors.