Alemu, Lakew (Dr)Mekonnen, Fasika2022-07-292023-11-042022-07-292023-11-042022-03http://etd.aau.edu.et/handle/123456789/32418objective of thestudy was toillustratetherelationshipbetween credit risk andperformance of private commercial banksinEthiopia includingthe moderating and mediatingeffects of GDP and inflation respectively. A panel datafromtwelve selectedprivate bankscoveringthesixyearperiod( 2016-2021)wasanalyzed.The traditional profit theory has beenemployedtoformulate profit,measuredby ReturnonAsset (ROA),asa functionof Non-performingloanrate (NPLR),theratioof Pre Provisionprofit toNet loanandLoan toTotal Assetsmeasuresof credit risk andmediatingandmoderatingeffectswereconsidered. Panel data regressionmodelanalysisviageneralleastsquares(GLS), estimatorswasused to estimate the function.Bothexplanatoryandinferentialresearch approachhas been usedtoanalyzetherelationshipsof adependentvariablewithexplanatoryvariablesandtheeffectsofmediatingandmoderating variable. After analyzing the data, the two variables NPLand LTA has shown a significant positive andnegative relationshipwithROA respectively. Preprovisionprofitofbanksshowsthattherewaspositiveandstatisticallyinsignificantrelationshipwithperf ormance. Additionally,GDP has a significant moderate effect on PPPLandLTTA on the other handinflationmediateNPLandLTTA variablesofbanksinthisstudy. The study concludes that, increasingloanisnot an indicator ofincrement inperformance ofprivate banks. So, otherincome generating waysmustbe considering in order to increasingperformance.encredit riskPerformancemoderationmediationThesis