It is the separation of ownership and control that resulted the concept of corporate governance.rnSince governance is the center point for corporate success it needs the attention of all stakeholders.rnUnless given a focus it deserves in managing a business, it may result undesirable long termrnconsequences. In the current business set up, banks are among the industry that are implementingrnthe concept of corporate governance in the context of Ethiopia. Due to the sensitivity nature of thernbusiness and an irreplaceable role banks play in the macro economy of a given country, poorrncorporate governance practice in banks may have a macroeconomic impact that could potentiallyrnaffect the whole economy. As a result, this research paper was prepared with the objective ofrnmeasuring and understanding the level of corporate governance practice in private banks inrnEthiopia in light of OECD principles and Basel committee on banking supervision, so as tornimprove the understating of various stakeholders and also to shed light on the adoption of bestrnpractices and principles into the country corporate governance system. Major components likernboard of directors, shareholders, Executive directors, supervisory organ, disclosure, riskrnmanagement and internal control were taken as major determinant variables. A questionnairernprepared addressing those variables were distributed and related documents were also reviewed.rnThe data collected were analyzed using descriptive statistics and the results were discussed basedrnon the outcome and conclusion and recommendations were forwarded. From the output of thernresearch, it was learnt that, private banks in Ethiopia are in good corporate governancernfoundation because of the regulatory organ strict supervision on each and every action of thernbanks in the market. However, some important and critical manifestation of good corporaterngovernance are lacking both from regulatory side and from the banks side that would promote thernpractice some steps higher. It is the rule of the land that dictates the level of good corporaterngovernance than the willingness and awareness of the banks to inculcate this business need intorntheir management system