Abstarct: Credit risk management is one of the most critical determinants of banking stability, financial soundness, and operational performance. As the primary financial intermediaries, commercial banks play a fundamental role in mobilizing savings, allocating credit, and supporting economic development. However, the effectiveness of these functions largely depends on the ability of banks to identify, assess, monitor, and control credit risk. In Iraq, the banking sector has faced significant challenges in recent years, including economic volatility, fluctuations in oil prices, the repercussions of the COVID-19 pandemic, and structural constraints within the financial system. These challenges have increased the importance of evaluating the efficiency of credit risk management practices among commercial banks. The present study aims to assess and compare the efficiency of credit risk management in Iraqi commercial banks during the period 2019–2023. The research is applied in purpose and quantitative in nature, employing a descxriptive–analytical approach. Efficiency assessment was conducted using Data Envelopment Analysis (DEA), specifically the input-oriented Banker–Charnes–Cooper (BCC) model under the assumption of Variable Returns to Scale (VRS). The study population consists of nine commercial banks operating in Iraq. By defining each bank-year observation as a Decision-Making Unit (DMU), a total of 45 DMUs were evaluated. The DEA model incorporates two credit risk-related input variables: provisions for non-performing loans and the ratio of loan loss provisions to total loans. The output variables include the Capital Adequacy Ratio (CAR) and the bank’s credit performance relative to the industry average. Data were collected from audited annual financial statements, reports issued by the Central Bank of Iraq, and other official financial sources. Prior to analysis, the data were standardized, validated, and structured in accordance with DEA methodological requirements. The findings reveal substantial differences in credit risk management efficiency among Iraqi commercial banks. While some banks operated on the efficient frontier and demonstrated superior capability in transforming credit risk-related resources into desirable financial outcomes, others exhibited varying degrees of inefficiency. The results indicate that banks with more effective control over credit risk exposures and provisioning policies were generally able to maintain stronger capital positions and achieve better credit performance relative to their peers. Furthermore, the observed efficiency disparities suggest considerable potential for improving risk management practices across the Iraqi banking sector. Overall, the study underscores the strategic importance of strengthening credit assessment systems, enhancing corporate governance mechanisms, improving risk monitoring frxameworks, and adopting best practices from benchmark banks. Such measures can contribute significantly to improving banking efficiency, reinforcing financial stability, and supporting the sustainable development of Iraq’s banking industry.