Credit risk and reputational risk, the most important for banks in Albania

Authors

  • Artur Ribaj

DOI:

https://doi.org/10.55312/op.vi1.5902

Abstract

Risk in the activity of commercial banks is an element that constantly accompanies their activity, as in any other business activity. The difference between banks and businesses in other activities outside the financial system is that in the case of banks, their risks have a direct impact on the financial stability of the country and the push (positively or negatively) they give to Albania’s economy, so also the risk they face those in their activity brings domino effects. For this reason, the Bank of Albania as a constitutional body has the responsibility to regulate, license and supervise the activity of banks in the Republic of Albania. The Basel principles, EU directives within the Acquis Cooomunitare and good practices help to complete the regulatory framework qualitatively, as for any other country. From the analysis of the literature and data from the questionnaire for the 5 main banks in Albania, we reached the conclusions that: credit risk and reputational risk are the most important for commercial banks in Albania.

Keywords:

commercial bank, credit risk, reputational risk, Bank of Albania

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References

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Published

2024-11-24

How to Cite

Ribaj, A. (2024). Credit risk and reputational risk, the most important for banks in Albania. Optime, (1), 407–418. https://doi.org/10.55312/op.vi1.5902

Issue

No. 1 (2024): Optime

Section

Articles