Internal Control System and Financial Performance of Financial Institutions in Rwanda: A Case Study of Bank of Kigali Plc (2020–2023)

This research investigated the effect of internal control system on the financial performance of commercial banks in Rwanda, a case of Bank of Kigali Plc.The findings indicated that for the statement that stated that "Effective control environment over financial reporting to minimize errors and fraud at Bank of Kigali" the respondents agreed with a mean of 4.00 and standard deviation of .961with the statement.This indicated that the respondents strongly agreed with the statement as indicated by the mean and heterogeneity of answers as indicated by the standard deviation where the respondents had different opinions of the statement and lead to the same answer.The other statement evaluated was "The internal control principles identify irregularities at Bank of Kigali" where the respondents agreed with a mean of 3.96 and standard deviation of .940.This indicated that the respondents agreed with the statement as indicated by the strong mean and heterogeneity of answers as indicated by the standard deviation where the respondents had different opinions of the statement and lead to the same answer.The internal control system plays a vital role in ensuring the financial stability and sustainability of commercial banks in Rwanda.The study conducted on the internal control system of commercial banks in Rwanda reveals that the majority of the banks have a well-established internal control framework, which is in line with the regulatory requirements and international best practices.Banks should conduct regular risk assessments to identify potential risks and implement measures to mitigate them.