Basel III Implementation and Financial Performance of Banks in Rwanda: A Case of Bank of Kigali Huye Branch
DOI:
https://doi.org/10.53819/81018102t3077Abstract
The banks assume a huge part in the economy by working with the progression of assets from various gatherings and businesses inside an economy. Notwithstanding, their presentation might be impacted by the steadiness and capacity to oversee gambles. Given this, different guidelines, including worldwide guidelines, have been figured out. This study explored the effect of implementing the Basel III standard on the financial performance of banks in Rwanda. It was directed by three explicit targets, which spin around three key developments, specifically, the impact of extension execution of Basel III, the connection between quality execution of Basel III, and the impact of the assessment system of Basel III on the monetary execution of banks in Rwanda. The study used descriptive and correlational research designs. Primary data was collected using structured surveys and interview guides, while secondary data was obtained from the annual financial reports of Bank of Kigali plc and other relevant documentation. The collected data were processed and analysed using SPSS version 23, where frequency tables, percentages, mean, standard deviation, Pearson's correlation, and regression analysis were conducted. Pearson correlation analysis revealed that coverage implementation (r=0.429, p=0.000), quality implementation (r=0.495, p=0.000), and evaluation structure (r=0.490, p=0.000) were all positive and statistically significant. The overall impact of Basel III implementation showed R2=0.570, indicating that 57% of the changes in the financial performance of banks in Rwanda can be attributed to the implementation of banking regulations, more specifically, the Basel standards. The regulatory body should ensure that the financial industry meets global financial standards. The study suggests that individual banks should also ensure that they provide quality compliance through transparent disclosure of their compliance and performance level of the Basel III standard
Keywords: Basel III Implementation, Financial Performance, Banks, Huye Branch, Rwanda
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