Due to their importance, commercial banks currently play a very important role in national financial systems. The profitability of commercial banks depends on how they manage their loans, and credit risk management is thus crucial in the banking system, risk management is significant activity of commercial bank. The main purpose of this study is to observe the extent to which bank profitability is dependent on credit risk management, with a focus on commercial banks in the Western Balkans (Kosovo, Albania, North Macedonia and Serbia). The results reveal a certain assured correlation among credit risk as well as the profitability of banks, where the ratio of non-performing loans (NLPR) has a positive effect on return on equity (ROE) and return on assets (ROA). Capital Insufficiency (CAR) shows that positive dependence is without any statistical significance on return on equity (ROE) and return on assets (ROA).

The study aims to substantiate effective strategies to manage credit risks in commercial banks, for example, Kosovo. Based on the annual financial statements of commercial banks in Kosovo for 2010-2020. We built polynomial regression models to assess the impact of credit risk on the bank's financial stability. Empirically, determined and argued the different nature of the credit risks influencing the bank's financial stability according to various on the assets size of commercial banks. Preventive and reactive scenarios for minimizing the negative impact of credit risk on the financial stability of commercial banks in Kosovo have been determined using the constructed regression models.  The results obtained are of practical importance and can help develop effective strategies for managing the financial risks in commercial banks in times of crisis and building up financial stability in stable conditions.

Commercial banks' credit risk management is a function that focuses on events that may affect the achievement of objectives. Improper management will result in negative consequences or results. Therefore, banks usually pay more attention to events with a higher probability and impact of a direct loss of revenue and capital than events that may result in positive effects. This research adopts secondary data and seeks to analyze credit risk management of commercial banks in Kosovo through a developed DEA (Data Envelopment Analysis) model. The study covers seven commercial banks in Kosovo for the period 2008-2016 and uses Tobit regression to determine credit risk efficiency. The estimation results show a statistically significant positive relationship between bank efficiency, capital adequacy, and loans.  Moreover, the study found that banks' efficiency factors, including profitability, deposits, costs, banks size, GDP growth, and inflation, are not statistically significant.

Objectives: Nowadays, tourism continues to represent the most dynamic and open part of the countries’ economic system. This research paper explores tourism in Albania over the years, with particular focus on the development of tourism during the pandemic situation, mainly the number of entrances and exits of visitors to the country compared to the years before. Methods/Analysis: This study will take into consideration the secondary data provided by the World Travel and Tourism Council and INSTAT Albania focused on 2020 as the pandemic year, compared to the previous years by investigating the movements of visitors in Albania, their origins, and the ways of travel through seaports, air, or land. The travel purposes of Albanian visitors are different, but this research will focus only on those purposes for holidays during the summer season. The data will be presented through the percentage of a frequency distribution at each entrance and exit point, in some cases explained by tables and graphs, comparing the months in the peak summertime. Findings: Statistical analyses represented in this research give a clear picture of developing tourism in Albania during the pandemic year, mostly tourists from Kosovo. Improvement: This research paper summarized some specific recommendations to the government institutions and SMEs specializing in the tourism sector to be ready for the future challenge, even deep dives in the pandemic zone.JEL Classification:N 20, N3 E24, P23 J5 Doi: 10.28991/esj-2022-SPER-03 Full Text: PDF

Abstract. Today risk management plays a vital role in business. Each firm, whether big or small, makes an effort to manage risk more effectively. Risk management is very important in the financial system, especially in banks. Billions of Euros are spent each year on the financial reporting of banks. Banks should implement effective solutions in risk management to mitigate their risks. Great financial debate that originated in the 1990s is reportedly linked to errors that occurred in the banking sector due to poor risk management. It should be noted that today technology plays a key role in risk management and it has already had a positive effect on the financial industry. Analysis of risk and its management has become significant in the Kosovo economy since the post-war period. The nature of the banking business is threatened by risks because more financial products are becoming complicated. The main role of banks is intermediation between those who have resources and those seeking them. Banks face various risks at the corporate level, such as operational, liquidity, legal, credit, and market risks; thus, these risks should be converted into a composite measure. This research aims to determine practices and effects of risk management in the banking sector. Relevant data were collected from banks through questionnaires and telephone interviews; analysis has been conducted using statistical tools. This study will engage both the quantitative and qualitative methods of data analysis. Dependent variables will be separated from independent variables, and regression analysis will be used to analyse the quantitative data.

In recent years, Kosovo has had a strong volatility in attracting foreign investment into the domestic market, which has been accompanied not only by the decline in FDI flows but also by the quality of investments. Kosovo has not been able to catch the trend of FDI absorption just as it takes place in an important part of developing economies; it is also failing to follow the success of neighbouring countries. The success of further development of Kosovo’s economy cannot be imagined without the strong presence of foreign-owned businesses as a guarantee that this goal will become objectively achievable. The aim of the study is to examine recent trends and characteristics of FDI flows and patterns in Kosovo. This study adopts a qualitative research method using secondary data taken mainly from Kosovo’s Central Bank and Business Registration Agency. The present study concludes that FDI in Kosovo is mainly oriented to the Real Estate, Rental and Business sectors. Moreover, the main FDI contributors are businesses from the EU countries and Turkey. A majority of FDI inflows in Kosovo have been predominantly dominated by five countries.

This research attempts to assess the impact of balanced scorecard on improving the performance and the profitability of the implementing companies. Research has been carried out using secondary data; narrative analysis has been adopted for this study. This research concludes that balanced scorecard has contributed to improve the performance and profitability for the businesses that have adopted the model.

Banks between the financial services they provide play significant roles in the country's economy The importance of banks in Kosovo is one of the essential catalysts in economic growth. The banking industry based on efficiency and performance industryis the leading indicator of the country's financial stability The pace of economic growth and long-term stability in the country varies from the level of credit and for what economic activities the bank finances. Credit risk is the primary determinant of banking performance. The higher the risk that the higher the risk is the probability of bank loss and vice versa In this study banking activities will be discussed and events in general, as well as an analysis of the financial system especially at banks, with particular emphasis on the importance of credit risk management.