This paper explores the issues underlying the credit risk governance mechanism of banking institutions in emerging economies. This is an important area of study given the essential role that banks play in the financial markets of emerging economies and the widespread banking reforms that these economies have implemented. The aim of this study is to draw conclusions about the level of satisfaction among banks' credit risk officials' with respect to Credit Risk (CR) governance mechanism currently installed in their respective commercial banks and proposes a novel research model. The proposed research model is based on the premise that by being in constant touch with the credit risk officials through their opinion surveys and in addition by acting upon the information so gathered can lead to significant improvement in CR governance mechanism in emerging economies. This paper attempts to gain insights into the four important elements underlying Credit Risk (CR) governance mechanism in commercial banks, namely, CR governance organization, CR governance policy and strategy, CR governance operations and systems at transaction level and CR governance operations and systems at portfolio level. The study draws conclusions on the basis of primary data collected from the senior credit risk officials who are themselves involved in designing and implementing CR governance mechanism in their respective banks. It also attempts to identify potential revisions/modifications in the existing CR governance mechanism that may be targeted in near future in emerging economies. The study findings are based on the empirical data collected from thirty commercial banks in India, an emerging economy through a structured questionnaire. The study concluded that Indian credit risk officials had medium level of satisfaction with regard to current CR governance practices followed in their respective banks. It was further concluded that there lays a strong case to take remedial measures with regard to some issues to build up a sustainable CR governance mechanism. The top priority issues identified, such as: sanctioning of authority in accordance with the professional qualification of the personnel, regularity in training, regular revisions in credit risk rating model, monitoring practices at the transaction level and credit portfolio management have clearly highlighted avenues for future areas of improvement and up-gradations in CR governance mechanism in commercial banking sector, a special subset of Corporate Governance.