Influence of Asset Liability Management on Financial Performance of Commercial Banks in Rwanda: Camel Model Approach
International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
www.ijsr.net | Open Access | Fully Refereed | Peer Reviewed International Journal

ISSN: 2319-7064


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Research Paper | Finance | Rwanda | Volume 7 Issue 11, November 2018

Influence of Asset Liability Management on Financial Performance of Commercial Banks in Rwanda: Camel Model Approach

Immaculee Mukasinayobye, Dr Patrick Mulyungi

Sound asset liability management is a prerequisite for a financial institutions stability and continuing profitability, while deteriorating asset liability management is the most frequent cause of poor financial performance and condition With the prevalent challenges in the financial sector such as non-performing loans, slow growth of financial inclusion, limited securities for the loan seekers, stiff competition among the firms in the banking industry among others in the Rwandas banking industry, there is need for sound asset liability management. The purpose of this study is to assess the influence of asset liability management on financial performance of commercial banks in Rwanda. The specific objectives were to determine the influence of capital adequacy on financial performance of commercial banks in Rwanda, to investigate the influence of income diversification on financial performance of commercial banks in Rwanda and lastly to determine the influence of operating efficiency on financial performance of commercial banks in Rwanda. The study adopted descriptive quantitative and correlational study design. The population of the study consisted of staff in the departments of finance, operations, credit and risk in all the 11 commercial banks in Rwanda. Purposive, stratified and simple Random sampling techniques were utilized in sample selection. The study used secondary and primary data. Primary data was collected using closed ended questionnaires whereas secondary data was sourced from quarterly financial statements of various banks and verified by the BNR reports to ascertain the accuracy of the figures. The findings indicated a positive significant influence of asset liability management on financial performance. The study recommended that banks should embrace income diversification sources but such sources should be properly managed to yield success

Keywords: Asset liability, asset liability management, financial performance, commercial banks

Edition: Volume 7 Issue 11, November 2018

Pages: 174 - 178

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How to Cite this Article?

Immaculee Mukasinayobye, Dr Patrick Mulyungi, "Influence of Asset Liability Management on Financial Performance of Commercial Banks in Rwanda: Camel Model Approach", International Journal of Science and Research (IJSR), https://www.ijsr.net/search_index_results_paperid.php?id=ART20192582, Volume 7 Issue 11, November 2018, 174 - 178

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