Abstract:
The problem of this study was related to the failure of most banks to achieve their targeted profit emanating from bad corporate governance. The main purpose of this study was to investigate the role of corporate governance on the performance of financial institutions in Rwanda. The specific objectives are to find out the corporate governance practices of InkungaFinance Plc and assess the performance indicators influenced by corporate governance in InkungaFinance. This study used descriptive research design using quantitative and qualitative data. The population of this research was 27 persons fromInkungaFinance but the sample was whole 26 respondents. To collect data interviews, questionnaires and documentation were used as research instruments. The research findings according to the research objectives about corporate governance implementation and practice in InkungaFinance, the findings revealed that about 96% of all respondents confirmed and agreed that corporate governance is crucial and implemented for financial institutions, especially in InkungaFinancewhere 96% agreed that there is a balanced mix of non-executive and executive directors in the management of Inkunga finance; board and the top management of Inkunga finance collaborate in their daily, there is full and accurate reporting on Inkunga finance affairs to the shareholder proposals of employees on institutional issues should be considered in decision making as it is the case in Inkunga finance. On the objectives of the role of corporate governance on the financial performance of InkungaFinance Plc, the research objectives indicate that respondents strongly agreed that the performance of Inkunga finance decisions characterized by the evolution of several clients, increase of deposit, increase in turnover of Inkunga finance, improvement in net results of Inkunga finance. Finally, respondents agreed that there is the evolution of credits granted, increasing of equity. After analyzing the research findings from the field, the researcher recommended as following where financial institutions must conduct their activities in such a manner so as not to compromise the financial well-being of all its stakeholders. The board of directors must take responsibility for the strategic direction of their institutions and for satisfying themselves that management has put systems in place to mitigate
