Basel-II and impact of basel-II on small to medium enterprises: The Gaziantep application

In recent years banks are accepted as the basic indicators of countries? economics. National and international authorities have been making various arrangements for the banks to have stronger and steadier structure. One of these arrangements and possibly the most important one is Basel-II Standards.Basel-II aims sensitive to measure the risks that the banks exposed and to use these risks in the managing to credit risk process. Basel-II presented different measurement approachs in order to measure credit risk at minimum capital adecuacy which is the first block of capital adecuacy arrangement.Banking supervision authority of our country, BDDK, has published a road map and a calendar for the adoption of Basel- II standards in May 3rd 2005. According to this map, Basel-II standards will promulgate in January 2009 in our country. It is expected that the risk-focused approach of Basel-II will indirectly effect SMEs (Small and Medium size Enterprise) besides banking sector. In this study, the effects of criteria in scope of Basel-II Regulation of SMEs in Turkey were examined. analysis was made on SMEs working in Gaziantep to expose the necessary steps to be taken by the companies in adaptation process for Basel-II. Keywords: Basel-II, SME, Capital Adequacy, Rating