The commercial banking sector plays vital role in the economic development eflorts oFa counliyrnAnd the viability oFthe sector relies on the ability of the institutions to maintain a positive inflowrnof resources. And one of the factors that affect the ability of the commercial banking sectors tornmaintain positive flow of resources is the problem of default rates. Among the Ethiopian bankingrnsector there is a general problem of high default rate and the commercial banks have tried torntackle this problem through different ways.rnOne technique that has become popular in addressing problem of credit risk in other countries isrndata mining. Data mining technology has enabled banks in other countries to make goodrnprediction on the probability thal a certain borrower would de/clUlt or not. BUI, so far. norncommercial bank in Ethiopia has used data mining technologyfor such purposes i.e. assessmentrnof credit risk. Thus, the objective of this research work was to see if application of data miningrncould also be beneficial in the Ethiopian banking context. For reasons o/Familiarity Dashen BankrnS. C. was selected as a case study.rnThe methodology employed for the research had baSically three stages. 71wse were collection ofrndata, preparation of data and model building and testing. Data was collected Fom two kinds ofrndocuments that were available at the head office o/Dashen Bank. Then the data was preparedrnwhich included summarization, deriving of new fields and handling of missing data. The dalarnmining technique employed for the model building and testing was neural network. Neuralrnnetwork sofiware was thus used in building and testing a number of models.rnxrnFrom Ihe numerous frials, many models wilh encouraging resu/ls were obtained. These modelsrnindicaled Ihal dolo mining applicafionjor credil decision-making isjeasible 01 Dashen Bank. BUIrnone major Iimifafion was unavai/abilily oj dora in an eleclronicjorm. However, a survey in Ihe ITrndeparrmen.1 of Dashen. Bank suggesled Ihal Ihis problem is being duly addressed.