Banking sector is one of the most successful financial institutions in Ethiopia; however, there isrnvirtually no formidable study on management control system about this sector. The increasingrnknowledge and understanding on the application of management control system, for the area inrnwhich this research was undertaken by benchmarking of the same research undertaken in otherrncountry, were taken as the major initiators of this study and were the rationale to the research.rnThis study focused only the application of management control system in Ethiopia CommercialrnBanks even if there were different managerial issues in the banking industry at the head andrnbranch offices as well. An institution based cross sectional descriptive study with analyticrncomponents was conducted in Ethiopian commercial banks which are functioned at AddisrnAbaba. The study employed both quantitative and qualitative study approaches.rnStudyrnpopulation for the survey was employees, officers and mangers of the banks. Besides, for thernqualitative part, key informant interviews were conducted with mangers and officers of thernbanks. A questionnaire with five Likert scale for the survey which is mainly used for quantitativernpart, and Semi-structured interview guide for the qualitative were used as data collection tools.rnSPSS version 19 for windows was employed to perform statistical analysis. Findings wererndisplayed using tables, and pie-charts. The regression results show that strategic planning andrnmanagement; and performance measurement have positive and statistical significantrncontribution on management control system of Ethiopian commercial banks .this is as similarrnresult with (Sinikka 2007).Besides, the commercial banks are competing mainly in service andrnmany of them adapting differentiation strategy. The priority of the majority of commercial banksrnis customer retention. Commercial banks are encouraging employees to upgrade theirrnknowledge and skill on the basis of experience or service offer to the bank. However, somernproblems were also there; human capital, benefit entitlement, liquidity and responsibility center.rnTherefore, the commercial banks need to give due attention for these problems, giving andrnpreparing continuous training for employees and evaluating training results.rnKey words: Management control system, commercial bank, budgeting system, performancernmeasurement, cost accounting and service pricing, decision making, compensation and benefit