The research tested the direct effect of the credit risk on the financial performance, in addition to the indirect effect through the financial soundness. The study also tested the effect of banking governance on the mediating role of the financial soundness in the relationship between the credit risk and the financial performance in the Egyptian banks in the period from 2013 - 2023. The results of the research showed that the credit risk has a significant negative effect on the financial performance. The outcomes of the research also revealed that there is a significant effect of the credit risk on the financial soundness in the commercial banks. The results of the study also observed the presence of a significant effect of the financial soundness as a mediating variable in the relationship between the credit risk and the financial performance. The study also concluded that the effect of the financial soundness as a mediating variable in the relationship between the credit risk and the financial performance depends on the levels of banking governance in the Egyptian banks. In light of the study results, the researchers recommends the necessity of having an integrated framework for the credit risk management, with supporting the oversight of the central bank and committing to implementing the Basel Committee agreements to reduce the credit risks due to their negative impact on the soundness and financial performance of the Egyptian banks. Keywords: credit risk, financial soundness, banking governance, financial performance