Factors influencing savings mobilization by commercial banks in Rwanda
| dc.contributor.author | Byusa, Marcel | |
| dc.date.accessioned | 2016-10-04T11:50:23Z | |
| dc.date.available | 2016-10-04T11:50:23Z | |
| dc.date.issued | 2016 | |
| dc.description | A dissertation submitted in partial fulfillment of the requirement for the award of Master of Business Administration | en_US |
| dc.description.abstract | This study sought to establish the trends in savings mobilization in Commercial Banks of Rwanda, and establish the extent to which the institutional and external factors influence the savings mobilization function by commercial banks. The study employed a cross sectional research design to gather the views of 35 bank staff directly engaged in the savings mobilization function in 5 commercial banks. The study made use of qualitative and quantitative approaches. The descriptive analysis revealed a decreasing rate of savings mobilization by commercial banks with the current status considered unsatisfactorily. The Correlation and Binary Logit Model results revealed a significant influence of institutional and external environmental factors on savings mobilization. The institutional factors were: inappropriate work incentives characterized by inadequate salary enumeration which does not foster staff motivation and commitment to the savings mobilization function; and inappropriate rewards and sanctions which do not significantly impact on employee motivation, job commitment and performance in savings mobilization. The major external factor was competition with other deposit-taking institutions which is partly attributed to conducive regulatory environment provided by the National Bank of Rwanda which fosters entry of many other players such as Micro Finance Institutions, SACCOs in the financial sector offering similar deposit products and therefore sharing on the clientele base. In light of these findings, the leadership and management of commercial banks need to re-focus their performance management policies and strategies towards improving remuneration of employees to enhance staff motivation and job commitment. The banks should also devise innovative measures to position more strategically and competitively to attract more savings, and thereby mitigate the negative impact of competition with other deposit-taking institutions on their performance in savings mobilization | en_US |
| dc.identifier.uri | http://hdl.handle.net/11071/4763 | |
| dc.language.iso | en | en_US |
| dc.publisher | Strathmore University | en_US |
| dc.subject | Commercial banks | en_US |
| dc.subject | Savings | en_US |
| dc.subject | Rwanda | en_US |
| dc.title | Factors influencing savings mobilization by commercial banks in Rwanda | en_US |
| dc.type | Thesis | en_US |