IDEAS home Printed from https://ideas.repec.org/a/oap/atissr/v1y2018i2p44-49id1457.html
   My bibliography  Save this article

The Relationship between Risk Management and Profitability of Commercial Banks in Albania

Author

Listed:
  • Arjeta Hallunovi
  • Miranda Berdo

Abstract

Profitability is an indicator of the capacity of commercial banks to cope with their risk and/or capital growth, showing their competitiveness and measuring the quality of management. Credit risk is one of the significant risks of commercial banks by the nature of their activities. By effectively managing the exposure of commercial banks to credit risk, they not only support the viability and profitability of their business but also contribute to the system, stability and efficient allocation of capital to the economy. The purpose of the study was to determine whether there is a relationship between credit risk management and profitability in commercial banks in Albania. In this paper, there are four variables: ROA and ROE are the dependent variables, whereas non-performing loans (NPLs) and capital adequacy (CAR) are the independent variables. The main source of data collection are the annual reports for a 7-year period (2008-2015) by the Albanian Association of Banks. For quantitative data analysis, multiple regression model was used (SPSS).

Suggested Citation

  • Arjeta Hallunovi & Miranda Berdo, 2018. "The Relationship between Risk Management and Profitability of Commercial Banks in Albania," Asian Themes in Social Sciences Research, Online Academic Press, vol. 1(2), pages 44-49.
    • Handle: RePEc:oap:atissr:v:1:y:2018:i:2:p:44-49:id:1457
    as

    Download full text from publisher

    File URL: https://onlineacademicpress.com/index.php/ATSSR/article/view/1457/968
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oap:atissr:v:1:y:2018:i:2:p:44-49:id:1457. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Heather Rothman (email available below). General contact details of provider: https://onlineacademicpress.com/index.php/ATSSR/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.