Abstract:
The research purpose was to examine the “Impact of financial statements analysis towards commercial banks decision making in Rwanda, case of Bank of Kigali PLC (2019-2023)”. The specific objectives of the study are to analyse the effectiveness of financial statements analysis in Bank of Kigali PLC, to examine the contribution of financial statements analysis towards decision making of Bank of Kigali PLC and to evaluate the relationship between financial statements analysis and decision making of Bank of Kigali PLC. The study used a descriptive research design in which both qualitative and quantitative techniques were utilized. Target population of the study comprised 143 staff who works in Bank of Kigali PLC, sample size is 143 employees by selected Universal Sampling. The researcher was distributed the questionnaires by using self-administered structured questionnaires and the data collected. The data was processed by use a statistical package for social sciences (SPSS) version 22.0 was used to analyze the data collected through the questionnaire. The relationship between variables was established by use correlation model. The findings based on objectives which reliability data from financial statements indicated that the respondents agreed that financial statements of Bank of Kigali PLC are dependable with a mean of 4.1394 and standard deviation of 1.00545. Respondents also strongly agreed that financial reports conform to known International Financial
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Reporting Standards with a mean score of 4.1394 and standard deviation of 1.00545. Respondents also strongly agreed that financial statements of Bank of Kigali PLC are prepared accurately with a mean score of 4.1030 and standard deviation of 1.07422. investment decision making in Bank of Kigali PLC most indicated that the majority of respondents strongly agreed invest to exchange of current funds for future with a mean of 4.3706 and standard deviation of 1.23150, the majority of respondents strongly agreed the funds are invested in long-term assets with a mean of 4.3636 and standard deviation of 1.22501, the majority of respondents strongly agreed the future benefits will occur to the firm over a series of years with a mean of 4.3776 and standard deviation of 1.20914. The majority of respondents strongly agreed that the investment decision can be long-term, also known as capital budgeting where the funds are committed into long-term basis. Short-term investment decision financial statements analysis towards commercial banks decision making
