The Impact of Non-Performing Loans On the Performance of Commercial Banks in Rwanda

ABSTRACT The objective of this research is to identify the impact of nonperforming loans on commercial banks' performances, especially Banque Populaire du Rwanda Ltd. To identify the impact of NPL on the BPR "s income, to assess the criteria used by BPR to give loans to its customers. To identify challenges faced by BPR as a result of non-performing loans. To suggest and recommend on effective and efficient policies that BPR can use in reducing nonperforming loans. This research is condensed report of five chapters: chapter one of this study is general introduction part; this part states the statement of the problem of the research. objective of the study, scope of the study, significance of the study and background of BPR. Review of available literature on the topic covers the chapter two of the current research. Chapter three deals with research methodology. This chapter explains how the study will be conducted by the researcher regarding data collection and analysis. 11 will also explain the research design. sampling design, data collection. data analysis, interpretation and presentation and the study limitations. Chapter four covers the data analysis and interpretation. This shows the responses given by clients of Banque Populaire du Rwanda. Muhima branch. Finally chapter live presents the Findings, conclusion and recommendations. The principal objective of this study was to analyze the impact of non-performing loans in commercial banks of Rwanda. Bank Populaire du Rwanda (BPR), being one of the commercial banks in Rwanda. and obviously affected by this, has qualified to be my case study. Besides the persistent of non-performing loans in Rwanda, I have conducted the study in partial fulfillment for the award of BBA degree. This chapter therefore will comprise mainly summary of Findings. conclusion and recommendation where necessary suggestions of further research will be given.