Influence of Information Asymmetry Management on Lending Performance of Commercial Banks in Rwanda

Abstract

The purpose of this study is to assess the Influence of Information asymmetry management on the Lending Performance of Commercial Banks in Rwanda. In this study, the problem statement is lending performance, and specific objectives are to assess the influence of moral hazard management on lending performance of commercial Banks in Rwanda, to demonstrate the influence of adverse selection management, to understand the influence of propitious selection management on the lending performance of commercial banks in Rwanda and to analyze the moderating influence of political drive on the influence of information asymmetry management and lending performance of commercial banks in Rwanda. The primary data was collected through structured questionnaires; whereas secondary data through reading and analysis of relevant books, reports and journals. The researcher found out that Information asymmetry managementhas a statistically significant contribution tothe lending performance of Commercial Banks in Rwanda. The researcher recommends that the Government of Rwanda and civil society should diversify the propitious selection management policy and monetary regulation, determine a tangible and clear model to guide its target on Banking stability management, and tomake efforts to increase and sustain its participation in both the regional and international financial market.