AIJUKA RINAH2024-10-162024-10-162024-09-03https://hdl.handle.net/20.500.12311/1875ABSTRACT The research examined the effect of credit risk assessment and financial performance of commercial banks. The objectives were; to examine the impact of credit risk assessment on financial performance of commercial banks, the challenges faced by commercial banks in credit assessment and suggest possible solutions and the credit risk assessment policies used by Stanbic bank. The study employed a cross sectional survey design in addition to adopting a mixed approach. The study population was 38 where a sample size of 35 was selected using Morgan (1970). Data was collected using questionaire surveys and documents review methods. The study findings revealed that credit risk assessment has a greater contribution to financial performance in reference to Stanbic bank Uganda. The study finally concludes that credit risk assessment relatively predicts financial performance of Stanbic bank. The study recommends that; The management of Stanbic bank should consider putting more emphasis on credit risk management. The management of Stanbic bank should as well put in place good measures to ensure that appropriate credit risk measures are put in place so as to maintain the smooth running of the financial activities. The management should put more emphasis on proper credit risk management and this can significantly help in enhancing financial performance of the Bank.en