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|Title:||Impact of non-performing loans on bank’s profitability : empirical evidence from commercial banks in Kosovo|
|Keywords:||Banks and banking -- Kosovo|
Loans -- Kosovo
Credit -- Kosovo
Credit -- Management
|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.
|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
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