Anxhela AVRAMUSHI & Iva GJINOLLARI

The study aims to examine the bank’s performance in the current financial development stage. Through theoretical arguments and empirical evaluation is presented the financial situation of banking system in Albania. Bank’s performance evaluation is supposed to be given through multiple regressive econometric model, under which are identified the factors that affect ratio of return on equity (ROE). The assessment and analysis of the model shows that the ratio of return on equity is positively influenced by, net margin of profit, ratio of return on assets (ROA) and the ratio of capital adequacy, while has negative correlation with the level of non-performing loans and report credit / bank assets. A special space is also provided for connectivity that exists between excessive self-confidence of the management team and bank performance, under which the bank performances and results that excessive confidence has negative relation between them.
Key words: Banking sector, Performance, Regression model, Overconfidence
JEL code: E58, G21, G24
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