Session
Management, Business and Economics
Description
The topic of risk and risk management is a topic where the interest of academics, field professionals but also ordinary people has increased enormously. When this topic is dealt with in the banking system, the dominant element in the overall financial system of a country, then the interest rate is even higher, especially after the global financial crisis. In the case of the banking system, credit risk is one of the main risks to which the system is exposed. Over the last decades, loans have occupied the main weight among the assets of the banking system. Moreover, in recent years, the quality of the loan portfolio has deteriorated significantly, which is evident from the significant increase in bad loans served (otherwise known as non-performing loans as defined in the Albanian regulatory framework). Another objective of the paper is to identify and evaluate various macroeconomic factors and factors related to the structure of bank assets and liabilities affecting the bad credit indicator. Before interpreting the variables, all the necessary statistical tests have been made and their conclusions analyzed. Further, the impact of these factors is also transferred to the probability of default and the risk index as the credit risk metering for the banking system.
Keywords:
Management, Risk, Banking Sector, Financial Reports, Credit
Session Chair
Nora Sadiku-Dushi
Session Co-Chair
Aferina Skeja
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-437-96-7
First Page
119
Last Page
124
Location
Lipjan, Kosovo
Start Date
31-10-2020 1:30 PM
End Date
31-10-2020 3:00 PM
DOI
10.33107/ubt-ic.2020.321
Recommended Citation
Daci, Enver, "The Role of Risk Management Departments in Banking Institutions" (2020). UBT International Conference. 469.
https://knowledgecenter.ubt-uni.net/conference/2020/all_events/469
Included in
The Role of Risk Management Departments in Banking Institutions
Lipjan, Kosovo
The topic of risk and risk management is a topic where the interest of academics, field professionals but also ordinary people has increased enormously. When this topic is dealt with in the banking system, the dominant element in the overall financial system of a country, then the interest rate is even higher, especially after the global financial crisis. In the case of the banking system, credit risk is one of the main risks to which the system is exposed. Over the last decades, loans have occupied the main weight among the assets of the banking system. Moreover, in recent years, the quality of the loan portfolio has deteriorated significantly, which is evident from the significant increase in bad loans served (otherwise known as non-performing loans as defined in the Albanian regulatory framework). Another objective of the paper is to identify and evaluate various macroeconomic factors and factors related to the structure of bank assets and liabilities affecting the bad credit indicator. Before interpreting the variables, all the necessary statistical tests have been made and their conclusions analyzed. Further, the impact of these factors is also transferred to the probability of default and the risk index as the credit risk metering for the banking system.