The Impact of Audited Financial Statements on Credit Risk Assessment in the Banking System of Kosovo (Period 2014–2018)

Kalimashi Albina (), Ahmeti Yllka () and Ahmeti Ardi ()
Additional contact information
Kalimashi Albina: University of Prishtina, Faculty of Economics, Prishtina10000, Kosova
Ahmeti Yllka: University of Tetovo, Faculty of Economics, Tetovo 1220, North Macedonia
Ahmeti Ardi: University of Prishtina, Faculty of Economics, Prishtina10000, Kosova

Baltic Journal of Real Estate Economics and Construction Management, 2020, vol. 8, issue 1, 119-128

Abstract: The main goal of the present research is to address the role and importance of audited financial statements in increasing the efficiency of credit risk management in the banking system of Kosovo. In addition, the research will help users understand the financial statement assurance process and the audit process work for a proper assessment of credit risk by banks. The research is treated in sections as below: the first section includes a review of literature (theoretical and empirical review) related to theoretical concepts regarding the importance and development of financial statement audit at financial institutions, in region and beyond. The second section includes a general overview of the relationship between audit of financial statements of clients that establish financial relations with banks and credit risk management. The third section presents the results of the survey and the confirmation of the formulated hypotheses. The last part of the paper presents conclusions and recommendations that have arisen from our study. The main method during our research has been the use of qualitative/quantitative analysis, which has been carried out during various techniques, among which the main ones are the survey interviews & internal observation of processes based on our own professional experience in the banking channels. The paper aspires to provide a better understanding of challenges in assuring qualitative accounting information for decision-making, as well as presents the basis for further study of this issue in the future. The results of the study aim at adding the value to regulatory bodies’ documents such as politics/strategies/instructions and also setting new rules in regard to credit risk management.

Keywords: BoD – Board of Directors; CBK – Central Bank of Kosovo; CRM – Credit Risk Management; SM – Senior Management; NPL – Non-performing loans; Auditing; Financial Statements (search for similar items in EconPapers)
Date: 2020
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/bjreecm-2020-0009 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:bjrecm:v:8:y:2020:i:1:p:119-128:n:9

DOI: 10.2478/bjreecm-2020-0009

Access Statistics for this article

Baltic Journal of Real Estate Economics and Construction Management is currently edited by Ineta Geipele

More articles in Baltic Journal of Real Estate Economics and Construction Management from Sciendo
Bibliographic data for series maintained by Peter Golla ().