Numerous studies have looked at the implications of corporate governancernmechanism on company performance although the literature is not unanimous in itsrnconclusions. The aim of this research is to analyze the effect of different corporaterngovernance mechanisms , particularly board structure, different regulations,rnownership structure and depositors influence, on the performance of nine commercialrnbanks of Ethiopia, covering the period of 2005-2012. The study adopts quantitativernmethod research approach by combining documentary analysis and administratingrnsimple questionnaire. The findings of the study shows that proportion of non-rnexecutive from board characteristics variable, CAR and reserve requirement fromrnregulation proxies had negative and significant impact on the performance ofrnEthiopian commercial banks. On the other hand concentrated ownership, depositrnratio and availability of audit committee had a positive and significant impact onrnbanks performance. However, the impact of the remaining variables like board size,rnboard ownership, and liquidity on bank performance is negligible. The study suggestsrnthat the directive which regulates banks to have fully non-executive directors need tornbe modified. Furthermore, by reducing the type and ratio of reserve and liquidityrnrequirement and by devising different mechanism, like establishing deposit insurance,rnNBE need to encourage banks to decrease their money holdings without the potentialrnof any earning but with interest expense. In addition to this, there need to haverndirective which can enforce the disclosure of different relevant information like: sharernregister, financial reports and the rating of each bank by NBE to differentrnstakeholders and NBE need to assure the execution of these directives by differentrnbanks