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The impact of credit risk management on the banking profitability: a Survey of the theoretical and empirical literature

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  • VEIZI ZAMIRA

    (University of Gjirokastra)

Abstract

Banks as financial intermediation institutions are defined as businesses that receive and manage various risks. Among numerous banking risks, credit risk is identified by most researchers as the greatest risk affecting the performance of the bank. On the other hand, banking sector profitability has received great attention in recent years. The purpose of this paper is to recognize us with theoretical and empirical literature about the relationship that exists between credit management risk and banking profitability indicators. The most studies in this field have concluded that credit risk management is the primary contributor on the profitability of commercial banks. But there are and those studies that have proved that the impact of credit risk management on banking profitability is negligible.

Suggested Citation

  • Veizi Zamira, 2016. "The impact of credit risk management on the banking profitability: a Survey of the theoretical and empirical literature," European journal of economics and management sciences, CyberLeninka;«East West» Association for Advanced Studies and Higher Education GmbH, issue 2, pages 48-51.
    • Handle: RePEc:scn:032479:16684715
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