Abstract
The functioning of the banking system is an important factor for the transferring of funds in economy. The Albanian economy has changed from a contracted into a democratic one in 1991, which was followed by a change into the banking system. So the bank leaders and the government established a new banking system. In 1992 in Albania operated three state owned banks while in 2014 into the banking system operate sixteen totally private banks. This study attempts to explore the factors that mostly affect financial performance of commercial banks which operate in Albania. The study population consisted of 16 commercial banks with domestic and foreign capital, during the period 2010-2013 with a total of 48 data. The investigation uses crosssectional time series data which are collected from the Balance Sheet Annual Reports. Based on literature review, performance is defined in different ways but this study seeks to establish the underlying factors responsible on determine the return on assets (ROA) of the sample selected. © 2015 Published by Future Academy www.FutureAcademy.org.uk
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