Capital market advisory council “CMAC” and financial sector development program in Kigali Rwanda

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Kampala International University
The study investigated the effect of capital market on financial sector development in Rwanda. From population 150, a sample of 132 respondents was interviewed. Analysis of data was by regression analysis. The objectives of the study were to determine the profile of respondents, to de-termine how CMAC contribute to better financial intermediation in the area, to identify the market of development services put in place by CMAC in order to continue building the reputation as an innovative financier and to establish the significant relationship between capital market advisory and financial sector de-velopment programme. The findings of the study, following the research questions, revealed that there is a strong relationship between Capital market and development of financial sector in Rwanda because CMAC, through its stock exchange market will help to facili-tate financial institutions to get loans by buying securities, to provide services like increasing incomes of investors, enhancing economic growth, and creating employment, to increase the profits of financial institutions, and to attract more financial companies to join Rwanda stock exchange market. The research re-vealed that, CMAC has a strong intervention in promotion of investor protection, insuring that markets are fair, efficient and transparent so as financial sector gets vibrant. In order to enable a smooth transition into the effective operation of capital mar-ket in Rwanda there is need to implement the following policy recommendations. There is a need to develop the confidence in the public for investing in capital market by the increased public awareness aimed at educating the public about CMAC and RSE operations. Development of an effective legal system to increase the safety and complete removal of uncertainty regarding the benefits of the resulting investments, guar-anteed stable banking sector, enforcement of capital market regulations so that there is continued encouragement of the public in the bond market.
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Financial sector development, Kigali, Rwanda