Alem Hagos(PhD)Betelhem Belayneh2024-04-232024-04-232023-12-07https://etd.aau.edu.et/handle/123456789/2763Ethiopia has been going through a growing inflation rate for the past six years (2016/17-2021/22), and the impact of inflation has been felt throughout different economic sectors. One of Ethiopia's notable private banks is Nib International Bank and the primary goal of this research was to assess the impact of inflation on loan recovery in NIB. The study focuses mainly on the effects of inflation on the loan recovery performance of NIB. Descriptive research design and quantitative research approach were used. Loan repayment were the dependent variable under research, whereas inflation was the independent variable. To achieve the study aims and to test our hypotheses, SPSS version 25 was used to calculate descriptive, simple ratios, percentages, tables, mean frequencies, standard deviations, etc. as well as inferential statistics like stationary analyses, autocorrelation and regression analyses. Secondary data were used in the study to achieve its objective from the annual reports of the National Bank of Ethiopia (NBE) and Nib International Bank as well as the index data from the World Development Bank from 2016/17 to 2021/22 are collected in the form of CSV. Ethiopia experiences a high inflation rate from the years 2016/17 to 2021/22 and the highest inflation rate was recorded in 2021/22. The study shows that inflation rate and loan recovery performance have a negative proportional relationship therefore the finding show that independent variable has strongly correlated to loan repayments performance or practices the study reckoned that NIB should give a high priority and a keen eye on the effects of inflation and should have their own policies and strategies to mitigate the effects. Key word:enThesis