期刊名称：European Journal of Business and Social Sciences
印刷版ISSN：2235-767X
出版年度：2017
卷号：6
期号：7
页码：24-32
出版社：European Society of Business and Social Sciences
摘要：banking sector in Rwanda has undergone significant transformation and continues toimprove with new regulations and guidelines seeking to maintain stability. Bankstoday operate in an environment marked by growing consolidation, rising customerexpectations, increasing regulatory requirements, technological innovation and mountingcompetition. Compliance risk is thus seen as a major challenge today and is described as "lifethreatening" in the banking industry. Compliance risk losses have often led to the down fall ofmany financial institutions. For many organizations, ineffective management of compliance riskhas already resulted in unforeseen costs in terms of fines, penalties, corrective labor, and theinability to secure new business hence impacting negatively of profitability. The generalobjective of this study was to assess the influence of compliance risk management on financialperformance of commercial banks in Rwanda. The significance of the study was to reveal theextent to which compliance risk management affects performance of banks in Rwanda, the needfor banks to effectively manage their compliance risk to minimize its effect on their operationsand how banks could gain competitive advantage through the management of their compliancerisk. The target populations was 250 staff based in BK main branch and particularly staff whowork in Risk and Compliance, Credit, Legal, and internal audit and purposive sampling will beapplied. The study was based in the period of three years between 2013 -2015. The studyutilized both primary and secondary sources of data. The primary sources will be obtained fromthe bank head office branch. The research study adopted a questionnaire as a key instrumentfor primary data collection. Both descriptive and inferential research methods were used toanalyze data collected. From the findings, it is clear that the banking industry in Rwanda isgrowing a steady rate and consequently the players need to comply with certain regulations inthe market. In addition accountability contributes more to financial performance in thecommercial banks in Rwanda. Further, control environment as compliance risk managementpractice influences financial performance in Rwandan commercial banks. The findings indicatedthat banks’ audit control environment has a significant positive relationship with financialperformance. In addition, control environment and accountability are significantly positivelyrelated; hence, they influence the operations of commercial banks. The study recommends thatCommercial banks in Rwanda should maintain and strengthen control environment in order toincrease their financial performance that enhances better operations in the financial market.The banks also need to improve their liquidity level through increasing their current assets thatcan easily be converted into cash. This level of assets should be above the liabilities in order tomeet the creditors’ demands when there is need. Finally, there is a need to considerinterviewing customers of the commercial bank in Rwanda so that their views are also capturedinstead of bank staff as in this case.
关键词：control environment; accountability; monitoring and evaluation and financial;performance.
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