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https://www.um.edu.mt/library/oar/handle/123456789/78930| Title: | Impact of non-performing loans on bank’s profitability : empirical evidence from commercial banks in Kosovo |
| Authors: | Besmir, Collaku Aliu, Muhamet |
| Keywords: | Banks and banking -- Kosovo Loans -- Kosovo Credit -- Kosovo Credit -- Management Financial risk |
| Issue Date: | 2021-07 |
| Publisher: | Ahmet Gökgöz |
| Citation: | Besmir, C., & Aliu, M. (2021). Impact of non-performing loans on bank’s profitability : empirical evidence from commercial banks in Kosovo. Journal of Accounting, Finance and Auditing Studies, 7(3), 226-242. |
| Abstract: | Purpose: The study examined the impact of nonperforming loans on Kosovo banks' profitability over a
time span of 2010 to 2019. Methodology: The traditional profit theory was employed to formulate profit, measured by Return on Assets as a function of the ratio of Non-Performing Loans, Liquidity Risk, and Bank Size as control variables. We have employed multivariable linear regression to estimate the determination of the profit function. Findings: The results showed that the effect of nonperforming loans on the profitability is statistically significant and shows that for each 1% increase in NPL, the Return of Assets decreases by 0.19%, holding other variables constant. Originality/Value: The commercial banks in Kosovo, it is recommend following a balanced approach between portfolio growth and credit risk exposure. |
| URI: | https://www.um.edu.mt/library/oar/handle/123456789/78930 |
| Appears in Collections: | Journal of Accounting, Finance and Auditing Studies, Volume 7, Issue 3 Journal of Accounting, Finance and Auditing Studies, Volume 7, Issue 3 |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| JAFAS7(3)A11.pdf | 463.87 kB | Adobe PDF | View/Open |
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