The study examined bank-specific determinants of bank risk in the Ethiopian banking sector between 2010–2011 and 2021–2022. We used static and dynamic estimation techniques. The data were collected and compiled from the financial statements of each sampled commercial bank and the annual report of the National Bank of Ethiopia. The study revealed that the bank size was inversely related to bank risk. The researchers also found that bank risk was negatively and significantly affected by human capital efficiency and the loan-to-deposit ratio. Additionally, the study noted that when bank loan growth, the bank risk increased in commercial banks. Bank capital ratio and income diversification were not the major determinants of bank stability in the Ethiopian banking sector. The study provides suggestions for bank managers to have efficient risk management strategies, regulators to enhance regulatory frameworks, investors for decision-making, and policymakers to create macroprudential policies to manage risks effectively.
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