Denada HAFIZI, Irjan BUSHI

Abstract The current global economic crisis has affected the development of banking system in Western Balkan countries. Its impact has been expressed with the contraction of lending, fallen of foreign direct investments, fallen of international trade, and fallen of the volume of remittances. This paper aims to present an overview of some of the problems that our regional banking system function faces. For every country in the region we will present the trend of NPLs and we will make a comparison with each other. The comparison will continue with other indicators as: Regulatory capital as a percent of risk-weighted assets, Return of equity and Return on assets. From data we will see that NPLs is in higher level and is continuing rising from 2008 to 2012. We will present that the key performance indicators of profitability of a bank are influenced from the growth of the NPLs for each country in the region.
Keywords ROE, ROA, Banking System, and NPLs
JEL Classification G21, G29
PDF format below