IMPACT OF QUALITY OF ACCOUNTING INFORMATION ON FINANCIAL PERFORMANCE OF COMMERCIAL BANK IN RWANDA A CASE STUY: BANK OF KIGALI PLC PERIOD: 2020-2023

Abstract

The aim of this study is to analyse the impact of financial accounting on performance of commercial bank in Rwanda, a case stuy: Bk plc, period: 2020-2023. The objective of this study is to determine the effectiveness of financial accounting in Bank of Kigali plc, to analyze the contribution of financial accounting to the performance of Bank of Kigali Plc. This study delivered in four chapters and different subchapters which are as follows. Chapter one is general Introduction. General introduction which discusses about key component which are; introductions, background of the study, objectives, problem statement, scope of the study, importance of the study that is being report. The second chapter is literature review, the literature review provides the reader with the explanation of the theoretical ratio of the problem being study, and relevant literature on financial accounting and performance of commercial bank.The third chapter is research methodology, point out research design, populations of the study, sample size, methods and techniques that used to obtain data and information from the field.The fourth chapter is data analysis of the findings and interpretation that will provide the answers to the research questions of the study or results of tests of the hypotheses. At the end this study ended by the conclusion and suggestions.. With data collected from the field researcher confirmed that financial accounting has many activities lead the commercial bank to its performance. Basing on the findings in the table 4.9, the net income of Bank of Kigali Plc increased during the period of 2020-2023. In 2020 to 2021 the net income variation to 23,478,043Rwf which presents 20.81% of variation, and in 2021 to 2022 the net income variation were 1,504,418Rwf equal to 1.10% of net income variation is 21.49% in 2022-2023. This indicates that the net income of Bank of Kigali Plc keeps on increasing which is the indicator of performance of the bank within financial accounting in Bank of Kigali Plc. Many factors are origin of that performance but better financial accounting is main cause of the increase of its performance. With the data collected from the financial statement the researcher confirmed that there is good performance, and researcher confirmed that all objective of this study were achieved and the hypothesis were verified and confirmed.Based on the finding the researcher would suggest that the bank of Kigali could establish the followings issues that help to increase its performance: trained all employees on how prepare financial accounting in all departments,increase numbers of branches.