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Assessment Of Banking Assets On Financial Risk Management - Albanian Case

Author

Listed:
  • ADRIATIK KOTORRI

    (Faculty of Economy, Tirana University)

  • MIRELA MITI

    (Faculty of Economy, Tirana University)

  • INGRIT KONOMI

    (Faculty of Economy, Tirana University)

Abstract

Recognizing the asset value dynamics volatility of the financial institutions and the importance of its recognition both for financial reporting purposes and risk management effect, this paper aims to provide a practical model for the assets and financial institutions evaluation especially banks. It also aims to present a model to measure the value of banking assets for the purposes of risk management as an opportunity to identify in an early moment the banking risks. The paper develops the bank assets assessment forms and the basis of mathematical modeling of this assessment in general. He identifies also the evaluation factors as for example time to maturity, interest rate market for the assets (YTM), the interest rate agreed, the early repayment of the loan, interest ceilings and floors, off-balance sheet treatment, etc.

Suggested Citation

  • Adriatik Kotorri & Mirela Miti & Ingrit Konomi, 2014. "Assessment Of Banking Assets On Financial Risk Management - Albanian Case," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 314-318, February.
    • Handle: RePEc:cbu:jrnlec:y:2014:v:1:p:314-318
    as

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    References listed on IDEAS

    as
    1. James A. Embersit & James V. Houpt, 1991. "A method for evaluating interest rate risk in U.S. commercial banks," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Aug, pages 625-637.
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    3. James V. Houpt & David M. Wright, 1996. "An analysis of commercial bank exposure to interest rate risk," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), vol. 82(Feb), pages 115-128, February.
    4. Allen, Franklin & Carletti, Elena, 2008. "Mark-to-market accounting and liquidity pricing," Journal of Accounting and Economics, Elsevier, vol. 45(2-3), pages 358-378, August.
    5. Barth, Mary E. & Beaver, William H. & Landsman, Wayne R., 2001. "The relevance of the value relevance literature for financial accounting standard setting: another view," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 77-104, September.
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