Abstract: The purpose of this study was to assess the effect of regulations of central bank on performance of commercial banks in Rwanda using Rwanda commercial banks as the case study. A descriptive design was used and the target population was eleven licensed commercial banks in Rwanda.A census was conducted to obtain secondary data from commercial banks as well as review of information from central banks annual audited reports for the period 2010 to 2015. The data obtained was processed and analyzed using STATA programming to get progressively point by point results. The study found that capital adequacy regulation affects performance of commercial banks in Rwanda positively and this influence was found to be significant. The study concluded that capital adequacy positively and significantly influences financial performance suggesting that an increase in capital adequacy regulations within a bank will result in financial improvements in the bank. The study recommended that banks should comply entirely with the stipulated regulations since this will ensure a stable banking sector which plays a major role in the economy.