Growing competition in the financial sector has forced banks to develop new strategies to win the market and compete successfully.

This has seen the banks open  new branches, located in the heavily populated and busy commercial areas in Kigali City suburbs,   such as --  Nyabugogo, Nyamirambo, Kacyiru and Remera.

"We (banks) want to create convenience to our customers,” said Hannington Namara, Rwanda Commercial Bank (BCR) Corporate Banking Manager. Adding that, banks are expanding to make a little more business.

"The more you reach the customers, the more market share the bank will control and the more profits you will make,” Namara said.

As they target the businesses in the new areas, the banks are also fixing automated teller machines, a move that will reduce congestions in banking halls. Vivian Kayitesi, BCR Marketing Manager said.

Ministry of Finance officials however attribute the growth of the banking sector to the good investment climate that is attracting many investors.

Currently, the country has seven commercial banks including; BCR, Banque de Kigali, Ecobank, Fina Bank, Bancor, Cogeabank and Banque Populaire de Rwanda Rwanda. 

The Monetary Policy and Financial Stability Statement of the National Bank of Rwanda show commercial banks have consolidated assets to a tune of Rwf492 billion as of June 3, 2008 against Rwf467.5 billion of in December 2007, representing a 5.2 per cent increase.

The bank’s credit has increased 14.8 per cent from Rwf279.9 billion to Rwf321.2 billions.

The statistics indicate that the banks’ deposits increased by 3.9 percent from Rwf363.2 billion to Rwf377.3 billion.

According to the central bank, none performing loan size reduced substantially, to 14.3 per cent, end December 2007 to 8.8 percent to end June 2008.

Ends