Abstract:
The aim of this study was to analyze influence of Rwandan financial market dynamics on performance of financial institutions. The specific objectives were to assess the effectiveness of financial market dynamics in I&M bank Rwanda and to evaluate the impacts of Rwandan financial markets on I&M bank Rwanda’s performance. For effectivenessoffinancial marketdynamicsinI&MbankRwanda,theresultsshowthatthe types of financial market dynamics applied by I&M Bank Rwanda are Stock market, Over-the-counter markets, Bond markets, Money markets, Derivatives markets, Foreign
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exchange (forex) market and Commodities markets. From 2021 up to 2023, the ratios of net profit margin were 27.41%; 21.95% and 21.99% respectively. This means that for RWF 100, the bank got 27.41 Rwfs in 2021 got 21.953 Rwfs in 2022 and got 21.99 Rwfs in 2023. Therefore I&M Bank Rwanda’s net profit margin had been increased from 2021 to 2023 that means that they recognized performance. From 2021 up to 2023, the ratio of Return on Assets is 1.96%; 1.89% and 1.57% respectively. This means that; in 2021 for 100 RWF of invested they got 1.96RWF; in 2022 got 1.89Rwfs and in 2023 for 100 RWF of invested they got 1.57 RWF. The above result, show that return on equity was reduced from 2021 to 2023 as the study period. And the above result shows that the average of return on assets is 1.806 %. From 2021 up to 2023, the ratios of Return on Equity are as follow: 14.74%; 13.05% and 13.59% respectively. This means that in 2021 for the 100 Rwf investors have invested in bank, they generated in 14.74 Rwf of benefit and in 2022 for 100 Rwf investors have invested in bank, they generated in 13.05 Rwf of benefit; and in 2023 for the 100 Rwf investors have invested in bank, they generated in 13.59 Rwf of benefit. The results indicate the correlation between variables, where the findings shows that well financial market dynamics affect positively performance of I&M Bank Rwanda at 0.923 of “r”; therefore, as Pearson correlation coefficient requires, between financial market dynamics analysis and performance there is a strong positive relationship as (r) equal to 0.923. And this emphasize that financial market dynamics contributes to the performance of I&M Bank Rwanda.
