The study sought to establish the effect of Financial Controls on Financial Stability of Micro Finance Institutions in Rwanda. The researcher used theory of financial controls. Research Design, Population, Sampling Frame and Size, and Data Processing and analysis were used during the study. The study shows a positive significant regression coefficient. This means that a unit change in Financial Controls brings about change in Financial Stability in the Micro Finance Institutions in Rwanda. The study thus rejects the null hypothesis conclude that there is significant relationship between Financial Controls and Financial Stability in the Micro Finance Institutions in Rwanda. Data analysis was descriptive statistics and inferential statistics using Statistical Packages for Social Sciences (SPSS) version 24. The analysis of variance (ANOVA) was checked to reveal the overall model of significance. The study recommends prudent policy measures on Financial Controls especially Asset management, financial system controls and Capital adequacy. Management recommends that quarterly reports are produced on time and ensure that external investors are able to monitor liquidity management and detect liquidity and credit risks exposed to their investments early enough. Government recommends that since all financial services players under MFI adhere to frequent reporting for better increase of financial management and efficient investment decisions.
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