CAMELS analyses on Turkish commercial banking sector before and after 2001 Crises

Turkish banking sector has been in the process of adaptation to world economies since 1980 together with the financial liberalisation movement. Due to lack of background and experience banking sector has occasionally undergone financial turbulence and crises. Undoubtedly the cost of these crises to banking and real sector was very high. This thesis studies performance of Turkish commercial banking sector between 1995-2008 within the framework of banking crisis in 2001. The evaluating of performance was made with CAMELS ratings system. The analysis is made by means of twenty five indicators which chosen for CAMEL?s six dimensions which (capital adequacy, asset quality, management soundness, earnings, profitability, liquidity, sensitivity to market risk). The development of dimensions is explained by means of calculated performance index. The founds show that Turkish commercial banking sector, suffered seriously from the crisis in 2001. But the macroeconomic policies and political stability which practised after 2001, affected performance of commercial banks positively. Also beginnig to spoil dimensions of CAMELS in last observation year, showed reflection of global finance crises.According to informations of BDDK and TBB with the late of 2009 Turkish banking sector had portion of 80% in financial part, Turkish commercial banks had 90% in banking sector. Turkish commercial banking sector is most important factor in financial system. For this, commercial banking is important in terms of soundness of commercial banking sector, development of financial system and real sector financing. CAMELS ratings system should be used with all of its dimensions in Turkey as early warning system.Keywords: Commercial Banking, Crisis of 2001, CAMELS Ratings System