Effect of Base lII and III criterias on SME's financing and capital structures

Study, widely applied by many countries throughout the world, the Basel criterie's impact on the capital structure and funding of SMEs in Turkey, were investigated. The core of the Basel criteria, related of effective risk management and market discipline of banks aims to establish a healthy banking system. However, the standard coming together with Basel criteria, indirectly effects SMEs which is considered as an indispensable force of the economy; in such ways like financing problems, credit and guarantee conditions. These effects are founded as a result of 3 years examining the financial data of a company operating in the manufacturing sector, together with Basel criteria and the exanple of the evaluation process of the company's business demand for credit by banks. As a result of the evaluation process it is clear that applicability of the Basel criteria for our country is not possible yet. Some reasons behind these are; the lack of knowledge of SMEs in our country, being unregistered, being unable to institutionalization and branding and so on. So it is apparent that, with these circumstances lacking in many areas, many companies in our country that are having difficulty in financing have also big problems while obtainang bank loans. Key Word : SME, Finance, Basel Criteria'S