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Vese Qehaja-Keka
Skender Ahmeti
Muhamet Aliu


This research aims to examine the factors that impact the profitability of commercial banks in Kosovo and Albania. Profitability is crucial in the financial sector as it directly affects policymakers, regulators, and bank management. The study focuses on several determinants of bank profitability, including the number of employees, loan interest rate, non-performing loans, and total loans. The study employed quarterly secondary data spanning from 2010 to 2020, resulting in 400 observations. The analysis used multiple linear regression, influenced by the huge number of observations and the applicability of ordinary least squares (OLS) for such studies. This method allowed for a thorough examination of the interactions between the dependent and independent variables, providing a more in-depth understanding of the factors driving bank profitability. The statistical significance was determined using software such as STATA and SPSS. The dependent variables in the analysis are return on assets (ROA) and return on equity (ROE). The findings reveal that the loan interest rate, total loans, and non-performing loans significantly influence the profitability of the analyzed banks in Albania and Kosovo. Furthermore, the total number of loans and employees are statistically significant determinants of ROE. These findings provide valuable insights for bank management and policymakers in enhancing bank profitability and stability. 


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How to Cite
Qehaja-Keka, Vese, Skender Ahmeti, and Muhamet Aliu. 2023. “BANK PROFITABILITY DETERMINANTS: EVIDENCE FROM KOSOVO AND ALBANIA”. Journal of Liberty and International Affairs 9 (2):297-311.
Author Biographies

Vese Qehaja-Keka, University of Prishtina, Faculty of Economics, Kosovo

Vese Qehaja-Keka, born on April 24, 1992, is currently pursuing her PhD in Banking, Finance, and Accounting at the Faculty of Economics at the University of Prishtina "Hasan Prishtina". She earned her Bachelor's and Master's degrees at the same institution. Between 2016 and 2019, Vesëworked as a teaching assistant in subjects such as Statistics, Financial Mathematics, Mathematics for Economists, and Informatics, at the Faculty of Economics at the University of Gjilan "Kadri Zeka". In addition to her academic work, Vesë has actively participated in numerous conferences, presenting her research findings. As an author, she has contributed to several scientific papers, demonstrating her dedication to advancing knowledge within her field.

Skender Ahmeti, University of Prishtina, Faculty of Economics, Kosovo

Skender Ahmeti (07/05/1961) is a full professor at the Faculty of Economics of the University of Prishtina, Banking and Finance Department. He has the scientific degree of Doctor of Economic Sciences obtained in 2001at the same University. He has 36 years of professional experience and over 20 years of academic experience. During the years 2002 - 2006, he was Secretary General in the Ministry of Trade and Industry, while during the years 2018-2019 he was the Political Advisor to the Minister of Energy in the Government of the Republic of Kosovo. During the period from 2009 - 2016, he was the Dean of the Faculty of Economics at the University of Pristina. During this period, he taught accounting-based subjects, namely financial accounting, cost accounting, management accounting, and cost management. He is the author of 6 university books in the field of Accounting, and a number of scientific papers in the field of banking, finance, and accounting.

Muhamet Aliu, University of Prishtina, Faculty of Economics, Kosovo

Muhamet Aliu is a full professor at the Faculty of Economics of the University of Prishtina, Banking and Finance Department. Muhamet Aliu's extensive work experience includes various teaching positions at multiple institutions, including Iliria Royal University, University Universum, UIP University, and State University of Tetovo. Additionally, he served as the Permanent Secretary at the Ministry of Environment and Spatial Planning in Kosovo from 2003 to 2008. His professional background also includes working as the Head of Financial Services and Investment Operations at the Consortium for Reconstruction of Kosovo (CRK) and the Head of Financial and Commercial Service at NKZB “Bashkimi.” As a researcher, Aliu has published numerous articles in international and local journals. His research spans various topics, such as foreign direct investment, credit risk in banking, and environmental sustainability. He has also presented at international and local conferences, sharing his insights on risk management, financial reporting, and the impact of accounting systems on investment decisions.