The main objective of this study is to examine the impact of NBE regulations on private banksrnperformance through the significant regulatory variables explaining the NBE directives, using bank-rnspecific and macroeconomic variables as control variables. Balanced fixed effect panel regression wasrnused for the data of six private commercial banks in the sample covered the period from 2004 torn2013. Three regulatory factors affecting banks performance in terms of return on asset and netrninterest margin were selected and analyzed. The results of panel data regression analysis showedrnthat NBE Bill and Credit cap had negative and statistically significant impact on banks profitabilityrnbut reserve requirement had negative and insignificant impact on profitability. While measuringrnbanks cost of intermediation through Net Interest Margin three of the regulatory variables (i.e. NBErnBills, Reserve requirement and credit cap) had negative and statistically significant effect on netrninterest margin. Among the control variables bank size had positive and statistically significant effectrnon both performance measures, which means ROA & NIM. Operating efficiency and GDP hadrnpositive and statistically insignificant effect on ROA but both were statistically significant on NIM.rnEquity had positive and significant effect on ROA but had negative and statistically insignificant onrnNIM. Inflation had positive and insignificant effect on ROA but had positive and significant effect onrnNIM