The article investigates how Ethiopian commercial banks manage credit risks. The researchers used surveys and data analysis to study the banks' practices. They found that credit, liquidity, and operational risks are the main challenges for these banks. Financial statement analysis is the most common method for identifying risks, followed by audits and internal communication. Following Basel's principles helps banks manage credit risks effectively. Creating a good credit risk environment and having strong controls are crucial for managing risks. Public and private banks in Ethiopia show similar practices in credit risk management.