Abstract:
This study examines the impact of Central Bank regulations on the performance of Bank of Kigali
(BK) in Rwanda. The demographic profile of respondents is predominantly aged 31-50 years. The analysis reveals significant correlations between regulatory measures and bank performance, such as monetary policy rate, interbank rate, broad money growth, and Return on Equity (ROE). Higher central bank policy rates correspond to elevated interbank borrowing costs, while increased broad money growth shows a moderate negative correlation with ROE, suggesting potential impacts on bank profitability. The study also explores trends and correlations to understand how regulatory
measures influence bank performance over time. The monetary policy rate remained stable, indicating consistent central bank policy. However, interbank rates exhibited greater variability, reflecting fluctuations in borrowing costs within the banking sector. Broad money growth showed significant variability, indicating dynamic changes in money supply dynamics. Despite external
fluctuations, BK maintained a stable ROE ranging from 16.0 to 22.9, underscoring resilient performance amid varying economic conditions. Stakeholders' perceptions of the impact of central bank regulations on bank performance metrics were largely positive, with a majority agreeing that these regulations enhance net income, improve return on assets, and contribute to customer growth.
