<b><i>Contribution of Liquidity Management on Financial Performance of Listed Commercial Banks in Rwanda </i></b>

This study investigates the contribution of liquidity management to the financial performance of listed commercial banks in Rwanda. Key liquidity management indicators—Loan to Deposit Ratio (LDR), Deposit to Total Assets, Liquidity Coverage Ratio (LCR), and Capital Adequacy—were analyzed to determine their effect on profitability measured by Return on Assets (ROA) and Return on Equity (ROE). The results indicate that LDR has a significant and positive impact on profitability, while Deposit to Total Assets and LCR show mixed effects, positively influencing ROA but negatively affecting ROE. Capital Adequacy exhibits a dual effect, enhancing ROE while slightly reducing ROA, reflecting the trade-offs between regulatory compliance and operational profitability. Compared to prior studies, this research provides a comprehensive and integrated assessment of multiple liquidity indicators, offering a more nuanced understanding of their combined influence on bank performance in Rwanda. These findings suggest that adopting a balanced liquidity management strategy, which optimizes loan utilization while maintaining adequate reserves, can improve overall profitability and ensure sustainable financial stability, providing actionable guidance for bank managers and regulators