The study was carried out to empirically explore the monetary policy and macroeconomicrndeterminants of Ethiopian commercial banksâ€™ performance proxied by total loans and advancernusing balanced 14 years (2003-2016) annual audited financial statements of 6 banks andrnmacroeconomic data. It covers 100% of the population which are operated full years in the studyrnperiod. The study used three monetary policy variables: Liquidity Requirement Ratio, LendingrnInterest Rate and Cash Reserve Requirement and two macroeconomic: Real gross domesticrnproduct growth rate and annual Inflation Rate. Fixed effect model was used for the total loansrnand advance. The empirical result revealed that all monetary policy and macroeconomicrnvariables except cash reserve requirement ratio are statistically significant in determiningrnperformance of Ethiopian commercial banks. The study suggests the need for private commercialrnbanks to consider the macro economic factors when developing their strategies to efficientlyrnmanage their loans and advances, as we found significant relationship between macro-economicrnfactors and total loans and advances. The study also recommends the National Bank of Ethiopiarnmoderate the minimum policy rate as instrument for regulating commercial banks operations andrnfacilitating investment in the economy and the authority better re-evaluate the policies governingrncash reserve requirement ratio in order to influence bank reserves considering its currentrninsignificant effect on commercial banks credit creation role.