Abstract- The study aims at identifying the major factors
affecting Non-performing loans of Development Bank of
Ethiopia, Central Region. To achieve this objective descriptive
research design was used and data has been collected mainly
through primary source using questionnaire from both borrowers
and region’s staffs. Secondary data were also used by reviewing
the annual reports, bulletins, manuals, directives and procedures
issued by the bank. 43 borrowers and 24 staffs were taken as
samples from 77 default loans (Nonperforming loans) and 31
region’s staffs respectively based on stratified random sampling
method of sample selection by using mathematical formula. For
data analysis, descriptive statistics including mean, frequency
and percentages were used and processed through computer
loaded SPSS software. The result of the study shows that poor
credit assessment and credit monitoring are the majo