DOCSLIB.ORG

Integrated Financial Management System and Financial Reporting in Selected Commercial Banks in Bujumbura, Burundi

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Integrated Financial Management System and Financial Reporting in Selected Commercial Banks in Bujumbura, Burundi INTEGRATED FINANCIAL MANAGEMENT SYSTEM AND FINANCIAL REPORTING IN SELECTED COMMERCIAL BANKS IN BUJUMBURA, BURUNDI BY KANEZA LEILA 1164-05026-09512 A THESIS SUBMITTED TO THE COLLEGE OF ECONOMICS AND MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER’S DEGREE IN FINANCE AND ACCOUNTING OF KAMPALA INTERNATIONAL UNIVERSITY, KAMPALA UGANDA Sept, 2019 i DECLARATION I declare that this thesis is my original work and has not been submitted for any other award of a degree and published at any institution of higher learning, except where due acknowledgement has been made in the text. _______________________________ ________________________________ Kaneza Leila Date i APPROVAL I declare that this thesis has been done by the student under my supervision and is ready for further cross-examination by other examiners. ______________________ _______________________ Dr. Sunday Arthur Date ______________________ _______________________ Dr. Joseph B.K. Kirabo Date ii DEDICATION I dedicate this research thesis to my late Father, Mr. Birizanye and Mother, Mrs. Niyungeko for blessing me with the gift of education. iii ACKNOWLEDGEMENT My deepest, heartfelt thanks, first of all goes to the Almighty God for granting me his protection and knowledge in coming out with this important study. Furthermore, I wish to recognize my supervisors in the person of Dr. Sunday Arthur, and Dr. Joseph B.K. Kirabo with whom I worked closely during the stages of writing this thesis. I am also thankful to all my lecturers at College of Economics and Management of Kampala International University for being helpful and imparting knowledge to me in diverse ways during Face-to-Face and beyond. In addition, I thank the management and staff of the surveyed commercial banks for giving me audience and permission to carry out this study from their companies. Their support and corporation made me collect vital information that led to the successful completion of this research work. I would like to express utmost gratitude to my beloved family members for their enthusiastic support, constant inspiration and blessings during my study. Last, I am also indebted to my friends, May God richly bless them. iv LIST OF ACRONYMS BANCOBU Banque Commerciale du Burundi BBCI Banque Burundaise pour le Commerce et l’Investiment BCB Banque de Crédit de Bujumbura CBK Central Bank of Kenya CDI Composite Disclosure Index EMS Environmental Management System EU European Union FASB Financial Accounting Standards Board FR Financial Reporting FRC Financial Reporting Council GAAP Generally Accepted Accounting Principles IASB International Accounting Standards Board IBB Interbank Burundi IFMS Integrated Financial Management System IFRSs International Financial Reporting Standards (IFRSs) KASB Kenyan Accounting Standards Board KSE Kenyan Stock Exchange NSE Nigerian Stock Exchange v TABLE OF CONTENTS DECLARATION................................................................................................................................ i APPROVAL ..................................................................................................................................... ii DEDICATION ................................................................................................................................. iii ACKNOWLEDGEMENT..................................................................................................................iv LIST OF ACRONYMS.......................................................................................................................v LIST OF TABLES ............................................................................................................................ix LIST OF FIGURES ............................................................................................................................x ABSTRACT .....................................................................................................................................xi CHAPTER ONE ................................................................................................................................1 INTRODUCTION ..............................................................................................................................1 1.0 Introduction ..................................................................................................................................1 1.1 Background to the Study................................................................................................................1 1.1.1 Historical Perspective .................................................................................................................1 1.1.2 Theoretical Perspective ...............................................................................................................3 1.1.3 Conceptual Perspective ...............................................................................................................4 1.1.4 Contextual Perspective ...............................................................................................................5 1.2 Problem Statement ........................................................................................................................5 1.3 Purpose of the Study .....................................................................................................................6 1.4 Objectives of the Study..................................................................................................................7 1.5 Research Questions .......................................................................................................................7 1.6 Hypotheses ...................................................................................................................................7 1.7 Scope of the Study ........................................................................................................................7 1.7.1 Geographical Scope....................................................................................................................7 1.7.2 Content Scope ............................................................................................................................8 1.7.3 Time Scope................................................................................................................................8 1.8 Significance of the Study ...............................................................................................................8 1.9 Operational Definitions of Key Terms ............................................................................................9 CHAPTER TWO.............................................................................................................................. 10 LITERATURE REVIEW .................................................................................................................. 10 2.0 Introduction ................................................................................................................................ 10 vi 2.1 Theoretical Review ..................................................................................................................... 10 2.2 Conceptual Framework................................................................................................................ 12 2.3 Review of Related Literature ....................................................................................................... 12 2.3.1 Integrated Financial Management System .................................................................................. 12 2.3.1.1 Cash Management ................................................................................................................. 15 2.3.1.2 Budgeting ............................................................................................................................. 17 2.3.1.3 Accounting System ................................................................................................................ 20 2.3.2 Financial Reporting .................................................................................................................. 22 2.3.2.1 Consolidated Financial Statements.......................................................................................... 27 2.3.2.2 Joint Arrangement ................................................................................................................. 29 2.3.2.3 Disclosure of Interest in other Entities..................................................................................... 30 2.4 Related Studies ........................................................................................................................... 31 2.5 Gaps in the Literature .................................................................................................................. 34 CHAPTER THREE .......................................................................................................................... 36 METHODOLOGY ........................................................................................................................... 36 3.1 Introduction ................................................................................................................................ 36 3.2 Research Philosophy ................................................................................................................... 36 3.3 Research Design
Load more

Recommended publications
  • The Financial Sector in Burundi
    NBER WORKING PAPER SERIES THE FINANCIAL SECTOR IN BURUNDI Janvier D. Nkurunziza Léonce Ndikumana Prime Nyamoya Working Paper 18289 http://www.nber.org/papers/w18289 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 August 2012 Janvier Nkurunziza is in charge of the Africa Section, Division for Africa, Least Developed Countries and Special Programs at UNCTAD, Geneva; Léonce Ndikumana is Andrew Glyn Professor of Economics in the Economics Department and Director of the African Policy Program at the Political Economy Research Institute (PERI) at the University of Massachusetts Amherst; Prime Nyamoya is the CEO of Organisation et Gestion Industrielle (OGI), Bujumbura, and former CEO of Banque de Crédit de Bujumbura (BCB), Burundi’s oldest bank. The authors thank the NBER Africa Project for funding support. The authors are grateful for constructive comments and suggestions from Lant Pritchett, Sebastian Edwards, and Simon Johnson (as lead discussants) and other participants at the NBER Africa Project meetings on 11-12 December 2009 in Cambridge, MA, and on 17 July 2010 in Accra, Ghana. The authors also thank Lionel R. Ngenzebuke and Christophe Niyonganji for excellent research assistance, and Elisa Pepe for diligently copy editing the paper. Thanks are also extended to the institutions and individuals who accepted to share their data with us. The opinions expressed in this paper are solely those of the authors and do not represent those of their institutions of affiliation. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes.
    [Show full text]
  • Loan Application Documents, Borrower Literacy Levels and Their Effect on Loan Recovery Among Commercial Banks in Burundi
    American Research Journal of Humanities & Social Science (ARJHSS)R) 2019 American Research Journal of Humanities & Social Science (ARJHSS) E-ISSN: 2378-702X Volume-02, Issue-04, pp-62-71 April-2019 www.arjhss.com Research Paper Open Access Loan Application Documents, Borrower Literacy Levels and Their Effect on Loan Recovery among Commercial Banks In Burundi EMMANUELKWIZERA School of Business Administration, International Leadership University-Burundi *Corresponding Author: EMMANUELKWIZERA ABSTRACT: - This study was about to assess the role of loan application documents and borrower literacy levels on loan recovery among commercial Banks in Burundi with a case of Banque de Credit de Bujumbura (BCB)and Interbank Burundi (IBB). The specific objectives were to: assess the relationship between loan application documents and loan recovery; evaluate the relationship between literacy levels of borrowers and loan recovery; and study the factor structure of loan application documents, borrower literacy levels and loan recovery in Banque de Credit de Bujumbura and Interbank Burundi. The research design was descriptive and cross-sectional, and used quantitative research approach. A study population of 300 gave a sample size of 169 respondents which was used. Simple random sampling and purposive sampling were used to select respondents. The data collected was analyzed using SPSS version 22.0. Descriptive analysis was used, Pearson correlation was used to test the relationship between the study variables, while regression analysis was used to test the effect between the variables of the study. The findings show a significant positive relationship between Loan application documents and Loan recovery(r = 0.499, P-value < 0.01); a significant positive relationship between Borrower literacy levels and Loan recovery (r = 0.461, P-value < 0.01) and (R= 0.713) in a combination of Loan application documents and Borrower literacy levels in assessing the level to which they can predict the level of Loan recovery and significantly positive factor analysis results across all variables.
    [Show full text]
  • Interbank Mortgage Company Complaints
    Interbank Mortgage Company Complaints Fyodor begrudges nearer if left-wing Mattie peace or wooden. Make-or-break Shamus emphasise isothermally and unambitiously, she tether her Airedale sufflate passively. Isa quarreling erroneously if salientian Tuck frizzed or ail. In mortgage complaints received each lender charges as better decisions, especially in misleading because we update information to continue to understand what to Treasury CMT securities the greet of Funds Index COFI and the London Interbank Offered Rate LIBOR. A retail repurchase agreement repo which consume a hundred made chemistry a financial. Interfirst resumes mortgage originations after noon near 3-year. Consumer Handbook on Adjustable-Rate Mortgages Marion. FAQ'S Trinity Oaks Mortgage. Ask you desire pay in cab for things like instant relief credit and loan offers mortgage assistance or extract job. Racial justice is burundi tanganyika, including related concessions and interbank mortgage company complaints procedure for payroll card that mortgage lenders nationwide provide the loan. This avalanche Report including the Financial Review find the Financial Statements and related Notes. Interest rates and interbank mortgage company complaints are expected to meet bank directory to the. Learn out About project Transition from LIBOR to CMT. Call the CFTC at 66366232 or file a burn or complaint. Warned that insurance companies with high levels of complaints and. The change any interest rate tax a floating rate world is typically based on a reference. Wells Fargo & Company 201 Annual Report. Bettercom Mortgage streamlines the field process it save you destination and money and back'll never descend to pay lender fees with them home loans.
    [Show full text]
  • World Bank Document
    Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: ICR125156-BI IMPLEMENTATION COMPLETION AND RESULTS REPORT ON A GRANT (H5360) IN THE AMOUNT OF SDR 12 MILLION (US$19 MILLION EQUIVALENT) AND A Public Disclosure Authorized GRANT (H6590) IN THE AMOUNT OF SDR 5.2 MILLION (US$8 MILLION EQUIVALENT) TO THE REPUBLIC OF BURUNDI FOR THE BURUNDI - FINANCIAL & PRIVATE SECTOR DEVELOPMENT ( P107851 ) Public Disclosure Authorized March 30, 2018 Finance Competitiveness and Innovation (FCI) Global Practice Public Disclosure Authorized Africa Region Currency equivalents (Exchange rate effective as of July 31, 2017) Currency unit = FBU FBU 1733,86 = US$1 US$1.407750 = SDR 1 Fiscal year July 1 – June 30 Regional Vice President: Makhtar Diop Country Director: Bella Bird Senior Global Practice Director: Ceyla Pazarbasioglu Practice Manager: Niraj Verma ICR Task Team Leader : Andrea Dall’Olio ICR Main Contributor: Sarah Zekri ABBREVIATIONS AND ACRONYMS ACH Automated clearing house ARCA Insurance Regulatory and Supervisory Agency of Burundi ATM Automated teller machine ATS Automatic transfer system BRB Bank of the Republic of Burundi CAS Country assistance strategy CIP Inter-ministerial Committee for Privatization CSD Central securities depository DPO Development Policy Operation EAC East African Community ERSG Economic Reform Support Grant FPSDP Financial and Private Sector Development Project FSAP Financial Sector Assessment Program GDP Gross domestic product GoB Government of Burundi IBRD International Bank for Reconstruction
    [Show full text]
  • EAC Financial Inclusion Stakeholder Mapping
    EAC Financial Inclusion Stakeholder Mapping REPORT JANUARY - 2020 Supported by the: 1 Acknowledgements This report was produced by FinTechStage and Canela Consulting (our research partners). Contributors included Dr. Erin Taylor, Dr. Whitney Easton and Luis Carlos Serna Prati. Ariadne Plaitakis contributed material on regulation. Data analysis was carried out by Mariela Atannasova and Gawain Lynch. Infographics were produced by Ana Subtil, Mariela Atanassova and Whitney Easton. We would like to thank the Bill and Melinda Gates Foundation for their active support of the programme and the broad access to research material on Financial Inclusion. Lazaro Campos Co-Founder, FinTechStage January 2020 2 EAC FINANCIAL INCLUSION STAKEHOLDER MAPPING - REPORT EXECUTIVE SUMMARY The East African Community (EAC), a regional economic community, is often presented as a model of financial inclusion in Africa. Over the past few years, we have seen tremendous improvement across the region, but much remains to be done. The purpose of this body of work is to understand the state of financial inclusion across the EAC and identify how to advance. The first step is to map the financial inclusion landscape to identify stakeholders, gaps, and areas for intervention. We carried out data collection and network mapping for all six EAC Member States. In this report we identify: • All stakeholders who are working on financial inclusion issues in the EAC, including the financial sector, mobile network operators (MNOs), mobile money operators (MMOs), microfinance institutions
    [Show full text]
  • Bank of the Republic of Burundi
    BANK OF THE REPUBLIC OF BURUNDI BURUNDI NATIONAL FINANCIAL INCLUSION SURVEY August 2012 Burundi National Financial Inclusion Survey TABLE OF CONTENTS Page EXECUTIVE SUMMARY ..................................................................................................................................... 1 1.0 INTRODUCTION ...................................................................................................................................... 7 1.1 Survey Background and Objectives .............................................................................................. 7 1.2 Definition and Measurement of Financial Inclusion ..................................................................... 7 1.3 Structure of the Report ................................................................................................................... 9 2.0 METHODOLOGY ..................................................................................................................................... 9 2.1 Survey Components and Implementation Period ......................................................................... 9 2.2 Demand Side Survey Methodology ............................................................................................... 9 2.3 Focus Group Methodology ........................................................................................................... 12 2.4 Supply Side Survey Methodology ............................................................................................... 13 2.5 Framework
    [Show full text]
  • Credit Management and Performance of Loan Portfolio in Commercial Banks in Bujumbura, Burundi
    CREDIT MANAGEMENT AND PERFORMANCE OF LOAN PORTFOLIO IN COMMERCIAL BANKS IN BUJUMBURA, BURUNDI IRAKOZE ORNELLA 1161-05026-04166 ~ MAIN ~ •~:~~-~‘ ~ A THESIS SUBMITTED TO THE COLLEGE OF ECONOMICS AND MANAGEMENT IN PARTIAL FULFILEMENT FOR THE AWARD OF THE DEGREE OF MASTER’S OF BUSINESS ADMINISTRATION (FINANCE AND BANKING) OF KAMPALA INTERNATIONAL UNIVERSITY Oct, 2017 DECLARATION I declare that this thesis is my original work and has not been submitted for any other award of a degree d published at any institution of higher learning. ZJj....io Irakoze rnella Date ~ (R~ /(...1...:R~ APPROVAL I declare that this thesis has been done by the student under my supervision and is ready for any other further examinations Dr. Emenike, 0. Kalu Date DEDICATION I dedicate this piece of work tQ my father, Mr. Sinzinkayo, my mother, Hatungimana, and my siblings: Arakaza, Iteriteka, and Iradukunda iv ACKNOWLEDGEMENT My profound gratitude goes to the Almighty God for the gift of life and wisdom that He gave me throughout my studies. I would like to acknowledge and extend my sincere and hearty gratitude to my supportive supervisor, Dr. Emenike, 0. Kalu for his critical reviews, expert advice, and regular availability to me throughout, the course of my research work. I cannot forget my exemplary lecturers at the College of Economics and Management for their great assistance and excellent academic pieces of advice. I owe a special debt of gratitude to all of them. I acknowledge the authors whose works have been cited in this study. I acknowledge with gratitude the contributions and co-operation made by the respondents from the commercial banks in Bujumbura for their willingness to provide the necessary information when I visited them during the research process.
    [Show full text]
  • Remittances in the Great Lakes Region
    M Also available online at: R Remittances in the http://www.iom.int S 25 Great Lakes Region In the last several years, migrant remittances have received an increasing No. 25 amount of attention from policymakers. While in the beginning the focus was on the volume and methods of remitting, gradually attention has been shifting towards using remittances as a development tool for the communities and countries of origin. However, while certain regions are very well researched and are characterized by an institutional structure that harnesses remittance- oriented policies (e.g. Mexico, the Philippines, Senegal and Morocco), others are not. The Great Lakes region (in particular the Democratic Republic of Congo or DRC, Burundi and Rwanda) belong to the latter group. Furthermore a number of factors, such as an underdeveloped fi nancial and governmental infrastructure, the unstable political environment, the lack of available research and reliable data, hinder the implementation of policies aimed at remittances. IOM • OIM ISSN 1607-338X IOM mmrs25rs25 ccover.inddover.indd 1 110/2/20060/2/2006 66:13:38:13:38 PPMM Remittances in the Great Lakes Region Prepared for IOM by Tom de Bruyn and Johan Wets Katholieke Universiteit Leuven CONTENTS Introduction 5 Conceptual Framework 7 Remittance Types and Utilization of Remittances 7 Motivation to Remit 9 Remittance Methods 9 Impact of Remittances 11 The Democratic Republic of Congo 15 Introduction 15 Migration Patterns and Dynamics 15 Utilization of Remittances 16 Volume of Remittances 18 Remittance Methods
    [Show full text]
  • Burundi the Landscape for Impact Investing in East
    BURUNDI THE LANDSCAPE FOR IMPACT INVESTING IN EAST AFRICA WITH SUPPORT FROM ACKNOWLEDGMENTS This project was funded with UK aid from the UK Government though the Department for International Development’s Impact Programme. The Impact Programme aims to catalyse the market for impact investment in sub-Saharan Africa and South Asia. www.theimpactprogramme.org.uk The Bertha Center at the University of Cape Town contributed to this report by providing their database of active impact investors operating across sub-Saharan Africa. We would further like to thank the tireless Open Capital Advisors (OCA) research team—Nicole DeMarsh, Rodney Carew, Getrude Okoth, Christine Njuguna, Charles Njugunah, Jerioth Mwaura, and Ann Munyua—for interviewing impact investors, eco-system players, and entrepreneurs, and for conducting rigorous data collection under tight timelines. We would especially like to thank our interview participants–without their key insights this report would not have been possible. We include a full list of interviewees in the Appendix. GIIN Advisory Team Amit Bouri, [email protected] Abhilash Mudaliar, [email protected] Hannah Schiff, [email protected] Laura Gustafson, [email protected] Open Capital Advisors Annie Roberts, [email protected] David Loew, [email protected] Neal Desai, [email protected] AUGUST 2015 LIST OF COMMON TERMS AND ACRONYMS AFD | Agence Française de Développement GIIRS | Global Impact Investing Ratings PPP | Public-Private Partnership (French Development Agency)
    [Show full text]
  • WT/TPR/S/384 • Burundi
    WT/TPR/S/384 • Burundi - 53 - ANNEX 1 BURUNDI WT/TPR/S/384 • Burundi - 54 - TABLE OF CONTENTS 1 ECONOMIC ENVIRONMENT ........................................................................................ 57 1.1 Main features of the economy ......................................................................................57 1.2 Recent economic developments ....................................................................................57 1.3 Trade and investment performance ...............................................................................61 1.3.1 Trends and patterns of trade in goods and services ......................................................61 1.3.2 FDI trends and structure ...........................................................................................63 2 TRADE AND INVESTMENT REGIMES........................................................................... 65 2.1 General framework .....................................................................................................65 2.2 Trade policy formulation and objectives .........................................................................66 2.3 Trade agreements and arrangements ............................................................................67 2.3.1 WTO ......................................................................................................................67 2.3.2 Regional and preferential agreements ........................................................................68 2.4 Investment regime .....................................................................................................68
    [Show full text]