THE IMPACT OF BASEL III COMPLIANCE ON FINANCIAL ACCOUNTING AND REPORTING IN RWANDAN BANKS

This research examines the impact of Basel III compliance on financial accounting and reporting in Rwandan banks between 2010 and 2012, addressing capital adequacy, liquidity management, and risk reporting. Employing a qualitative methodology, the study utilized secondary data from regulatory reports and financial statements, analyzed through statistical techniques such as paired t-tests and repeated-measures ANOVA. Key findings revealed significant improvements in Capital Adequacy Ratios (from 12.4% in 2010 to 14.5% in 2012, p < 0.05) and Liquidity Coverage Ratios (from 100% to 112%, p < 0.01), reflecting enhanced financial stability and short-term risk management. Additionally, Non-Performing Loan (NPL) ratios declined from 6.3% to 5.1% (p < 0.05), indicating better credit risk practices. Despite progress, challenges such as limited expertise and high compliance costs persist. The study concludes that Basel III has strengthened financial transparency and resilience while recommending capacity building, regulatory support, technological investment, and innovative risk management to sustain compliance.