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Does Credit Risk Management affect the Financial Performance of Commercial Banks in Kosovo?

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  • Rrustem Asllanaj

    (University of Prishtina, Republic of Kosovo)

Abstract

This study analyses the impact of credit risk management on financial performance of commercial banks in Kosovo, and comparing the relationship between the determinants of credit risk management and financial performance by using CAMEL indicators. Panel data of85 observations from 2008 to 2012 of ten commercial banks was analysed using multiple regression model. Findings through multiple regression analysis are presented in forms of tables and regression equations. The study also elaborates whether capital adequacy, asset quality, management efficiency, earnings and liquidity have strong or weak relationship with financial performance of commercial banks. The study concludes that CAMEL model can be used as a system of assessment and rating of credit risk management by commercial banks in Kosovo.

Suggested Citation

  • Rrustem Asllanaj, 2018. "Does Credit Risk Management affect the Financial Performance of Commercial Banks in Kosovo?," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 7(2), pages 49-57, April.
    • Handle: RePEc:rbs:ijfbss:v:7:y:2018:i:2:p:49-57
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    References listed on IDEAS

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