This study examines how internal organizational factors influence the formation of delinquent accounts in the banking sector. Using stratified random sampling, 375 valid questionnaires were collected from credit officers, branch managers, and departmental supervisors. The Likert-scale instrument demonstrated strong reliability (Cronbach’s alpha = 0.89). Seven internal variables—mandated lending, monitoring and follow-up, interest rates, collateral, loan portfolio composition, lending processes, and employees’ banking knowledge—were analyzed. All variables showed statistically significant relationships with delinquent accounts (p ≤ 0.05). The findings highlight that overdue loans are shaped not only by external economic conditions but by organizational structures, employee competencies, and operational practices. Strengthening internal controls, improving credit assessment, and enhancing staff expertise can reduce credit risk and support sustainable banking performance.