Effect of Non-Performing Loans on Financial Performance of Selected Commercial Banks in Rwanda Stock Exchange within the Period 2019-2023

The study was about effect of non-performing loans on financial performance of selected commercial banks in Rwanda stock exchange within the period of 2019-2023.The level of financial performance every year was high and regression analysis revealed that Non-Performing Loans ratio has a positive coefficient of estimate which was significant (= 0.319, p0.05).On the other side regression analysis shows that cash reserve ratio has a positive coefficient of estimate which was significant (= 0.287, p0.05).This implies that a unit increase in Cash coverage ratio would lead to increase in performance of Equity Bank, BK, I&M Bank Rwanda Ltd and KCB Bank Rwanda Ltd by a factor of 0.287.Regression analysis shows that Non-Performing Loans coverage ratio has positive coefficient of estimate which was significant (= 0.245, p0.05).Therefore, it is from these factors researchers concluded that there is a significant effect of Non-Performing Loans ratio on financial performance of listed commercial banks in RSE.It was also confirmed that cash reserve ratio has positive and significant relationship on financial performance of listed commercial banks in RSE.Researcher also concluded that there is a positive and significant relationship between Non-Performing Loans coverage ratio and financial performance of listed commercial banks in RSE.