“Managing the ethical issues affecting lending products performance in Albanian banking system”.

Abstract-The recent Albanian banking system profitability fluctuations in a fragile economy slowdown context are actually oriented toward lending in real economy and money-market activities when from the other side non-performing loans trend is increased while deposits and basic interest rates have demonstrated the contrary. Hence, the weighted regression linear analysis toward return on equity ratio with other quarterly explanatory variables such as: Deposits/Assets, Loans/Assets, Placements/Assets, GDP growth and interest rates (pertaining to 16 second level banks for the time period Q3/2007- Q4/2010) is used to identify the determinants of non-performing loans in the market in question. The analysis results points out ethical issues in lending products affecting the quality of most crucial activity for the banks survival own selves, borrowing customers welfare and their social responsibility by revealing new standards in their credit risk management and future strategic goals.