Banks in Albania have been playing an important role in providing credit to the households especially to the housing sector and thereby contributing to the aggregate demand in the sector. Moreover, Albanian banks also extend various types of loans against the individuals and corporate before the financial crisis. After the crisis the banks become more restricted due to increase of non-performing loans as well as the macroeconomic volatility which is higher in emerging economies like Albania. In my study I will focus on the influence of mortgage loans and nonperforming loans in the country economic growth during the interval 2008-2013 that corresponds with the after crisis period.