Risk management in banking sector and the importance of risk management for economical stability

Banking sector contributes to growth with funding, by managing the country's savings and redirecting resources to areas that will create added value. The problems experienced in the banking sector affect many macro and micro variables that may cause the instability. Because of these features effectively management of the sector in terms of ensuring economic stability is crucial. A requirement of efficient working and having a strong financial structure with a particular level of profitability on banking is effective risk management of banks. Increasing in variety of financial services, the development of technology and the international financial services enhance the activities of banks. The increasing variety of services and sophisticated banking activities cause to diversify complex risks. Because of affecting service price and being more complex day by day make the banks to racionate risk management. Therefore, effective risk management of banks, which analyzes risk factors that exist or may arise is one of the prerequisites for working efficiently and effectively. The banking sector and the risks of this sector are examined and the consolidated financial datas of previous 10 years period are tried to be analysed with economical view of the period in this study.