This study aims to determine the management practices of the banking Industry in the Kingdom of Bahrain and their level of effectiveness. The researcher used the qualitative and quantitative type of research in the analysis of data. The survey questionnaire was the main research instrument used by the researcher in generating the primary data of the present study. The findings further revealed that there is a statistically significant relationship between the status and level of effectiveness along investment management, it accept the null hypothesis (there is relationship) and reject the alternative hypothesis. There are common problems encountered by the respondents on the management practices in the banking industry such as: lack of seminars and training of credit staff and other bank employees, inability to correct problems and implement appropriate risk management practices, inability to correct problems and implement appropriate risk management practices, and political influences when approving the loan. The least problem perceived was on management decision is not scrutinized by independent audit process. The problems viewed by the respondents in relation to the management practices will also be identified. Ultimately the researcher made implications on the impact of the banking industry in the Kingdom of Bahrain. This will be the basis for the conclusions of the study.