The Impact of National Currency Instability and the World Financial Crisis in the Credit Risk. The Case of Albania

My research paper aims at analyzing the relationship which exists between macroeconomic situation and the indicators that measure the quality of the credits in the Albanian bank system for the period 2002-2010. The results of the research work have proved the raised hypothesis that the instability of the national currency, in relation to Euro and the American Dollar, and the world financial crisis have influenced upon the systematic credit risk in Albania. First, we would like to express our evaluation about the credit portfolio characteristics and the tendency of the credit risks in our bank system, evidencing some very important moments which have affected sensibly the tendency of problematic credits. Further, we have investigated the relationship between the credit risk, which is measured by the ratio non-performing loans to total loans and some of the main macroeconomic indicators.