Abstract:
Bankruptcy is a state of insolvency where in the company or the person is not able to repay the
creditors the debt amount. Bankruptcy prediction is of importance to the various stakeholders of
the company as well as the society on the whole. The purpose of my research is study the
analysis bankruptcy and sustainability position of commercial banks in the Ameya branch. Many
Banking sector, which will been declared sick. The researcher used judgmental sampling
techniques. The research shall make analysis by distributing structured questioners developed by
researcher for individual respondents. The researcher concluded that high level of debt position,
low level of liquidity ratio, low level of leverage ratio, low earnings before interest and tax are
the main cause of bankruptcy in commercial Bank of Ethiopia Amaya branch and finally the
researcher recommended that minimizing the firms leverage through financial restructuring,
improving the efficiency of the firm asset through reduction of expenditure are assumed by the
researcher.
