The unforeseen ethical issues and respective consequences in lending process: Albanian banking system case

Abstract

For more than two decades the Albanian banking system has worked in a mutual stewardship context based on trust by reflecting real business risks and ethical considerations from an important part of its risk-taking activities from one side and from the other one the welfare of the borrowing customers in good and bad times as its major concern. In other words, the trust is the ethical basis of banking and vital for the survival of a long run banking industry. Therefore, it can be confirmed that the banking success story in Albania is dedicated to its good partnership strategy and prudent management to the money collected and lend regardless the practices through which they were carried out. Precisely, this research investigates and analyses the ethical issues of current lending process in Albanian banking system in the quality of most crucial activity for the banks own selves and most essential one for that fragile economy.