Role of Corporate Governance

The focus of this study is on the role of corporate governance in the survival of commercial banks with reference to BCR. The objectives of this study are to find out the role of corporate governance in the survival of commercial banks in Rwanda, evaluate the role of corporate governance principles in proper management of banks, and establish hindrances and benefits of corporate governance in commercial banks. The related literature was reviewed to understand the study. Primary and Secondary data were collected to achieve the stated objectives. Questionnaire was the technique used to obtain primary data. While, secondary data was obtained from the documents and the website of BCR. The findings proved that corporate governance play a vital role in the survival of commercial banks in Rwanda; particularly BCR. It was found effective due to the application of corporate governance principles and the benefits involved. However, it was found out that several factors such as, lack of separation of roles, weak boards, and failure to recognize other stakeholders, lack of accounting and auditing standards, political interference, etc hinder the effectiveness of the subject matter.