Application of the basel criteria to the banking sector: The case of a bank

The Basel Committee was established in 1974 in order to prevent crises in the banking sector as a result of the increase in international financial crises and globalization, to increase reliability and transparency, and to provide a common standardization in the banking sector. The Basel Committee, respectively, according to meeting the needs of the period in order to ensure stability and order in the financial markets and banking sector; Basel 1, Basel 2 and Basel 3 criteria have been issued. When the literature is examined, studies examining the Basel criteria and their possible effects on the Turkish banking system have been carried out. However, in these studies, it has been observed that there is no study in which companies with liquid and less liquid (cumbersome) balance sheets are compared using credit measurement methods within the framework of Basel criteria. With this study, it is aimed to fill this gap in the literature and to constitute an introduction for further research. In this study, first of all, the Turkish Banking System, Basel criteria and the effects of Basel criteria on the Turkish banking system were examined. In the last part of the study, the crediting process of a bank operating in Turkey is taken as an example in order to set an example showing the effects of Basel criteria in the banking sector. It is shown how the loan demands of two companies requesting a loan from the bank will be evaluated within the framework of Basel criteria.