Basel II criteria within the framework of harmonization to European Union and its effects on SMEs in Turkey: An application in a company in Antalya province

Even though the Basel II Criteria have been thought as an accord affecting the Banking System as the sum of standards used to assess the capital adequacies of banks, the effects of them to real sector, especially to SMEs are quite strong.Despite the fact that convergence to the Basel II Criteria has not been realized in Turkey yet the highly effective parts of Basel II for SMEs are envisaged to be enacted in the mid-term. In order not to be affected throughout this process, SMEs should acknowledge the Basel II Criteria and should take relevant in order to converge.In this study, the credit interest debt, that a small & medium size tourism enterprise founded in Antalya would be faced in case of using credit from a bank that applies standard approach, is shown under 7 possible scenarios and recommendations for increasing the competitive advantage of the small & medium size tourism enterprise are suggested in the process of converging to Basel II Criteria.