Effects of Central Bank of Rwanda Regulations on the Financial Performance of Commercial Banks in Rwanda

The study was about the effects of central bank of Rwanda regulations on the financial performance of commercial banks in Rwanda. A case study of Bank of Kigali(BK) PLC. The data was collected from audited financial statement of the bank under study, 13 head of departments in Bank of Kigali as were as central bank of Rwanda regulations. The techniques used in data collection include documentary and interview, to analyse the findings descriptive statistical and inferential statistics were used.

The findings shows that that the majority of respondents with 61.5% mentioned that Capital adequacy regulation help BK to protect shareholders equity against risks, 38.5% of the total interviewee confirmed that Capital adequacy helps BK to allocate existing resources effectively. The results demonstrated that 38.9% of the total interviewed confirmed that BNR’s Credit risk management requirement help Bank of Kigali PLC to reduce NPLs. They furthermore said that to avoid much negative effect of credit risk Bank of Kigali always prepare provision of these NPLS at 100%.  On the issues of the effects of liquidity Management regulations on the financial performance of Bank of Kigali PLC results demonstrate that 38.8% of respondents said that central bank’s liquidity management requirement help BK to always meet it short term obligations. Results also shows that 15.4% of the total respondents confirmed that central bank’s Liquidity management requirement help BK to keep up its Brand. The analysis shows that there is a significance relationship between the central bank of Rwanda regulations and the financial performance of commercial banks in Rwanda.

The authors declare no conflict of interest.

Not applicable

The datasets used in this study are openly available at [repository link] and the source code is available on GitHub at [GitHub link].