The impact of specific and macroeconomic factors on bank profitability

Banking is an issue, a practice, a business or a profession as old as the existence of man himself. It began to exist from primitive forms to more advanced forms that we face today in the age of the internet, electronic banking. With more and more development of the banking system, credit risk has always been a concern not only to bankers but to all those who take part in the business world, after default of either party can cause serious problems in the financial and the other economic indicators. Banking sector is characterized during the period under review the important developments that have significant impact on the economy of the whole country. Profitability of the banking system has also undergone significant fluctuations during the study period as a result of many factors, internal and external. Credit quality in the commercial banks has become a very important element, not only because of the financial crisis that the world economy is going through recently, but also from early changes in international financial reporting standards as well as implementation the conditions under Basel agreements. As long as lending is one of the main sources of income from commercial banks