2001-2010 Basel II criteria and effects on Turkish banking system

Crisesthat occurredinthe last20 yearsin international marketshas led to internationaldifferences in the banking sector and In order to overcomethem Basel Committee was establishedunder theBank for International Settlements. Basel Committeepublished BaselCapital Accord(BaselI)in 1988 in order to bring standardizationof bankingapplications. As a result of Crisesfaced bythe world financial systemin the period after1988 and Basel Iis notmore sensitive tothe risks, developed and developingcountries? banks felt theneedto reevaluatethe question ofcapital adequacy. In this context,Basel Committeehas prepared The newBaselIICapital Accord.The Difference ofBaselIIfromBasel I Accord is more comprehensive and adopted risk-sensitivemethods of measurement.in Turkey, the plannedimplementation ofBaselIIAccord the first In 2008 ,due todefects ina number of, has been postponed the beginning of 2009 by BRSB. Later,witha statement made bythe BRSA ForBaselIIbetween the dates 01.07.2011-31.06.2012envisageda transition period.In This study we explores BaselII criteria?s impact on Risk management andcontrolprocesses inthe TurkishBanking. Such a comprehensive accord is widely acceptedfor primarily to banks on all parties adverse effects in the short term but themedium and long termwill createa sustainablepositive impact oneconomic performance. The results of 3rd.quantitative impact by the BRSA atthe latestInMarch 2011 foresees that the transition toBasel II would lead toa significant decrease insector'scapital adequacyratioon a consolidated basis but may be arationof above theminimum rate 8%.Keywords:Basel I, Basel II, Capital Adequacy Ratio, Turkey, BRSA