Banks credit risk management and performance analysis and application of data envelopment analysis

A wide variety of activities due to the risks banks face. Although how a variety of risks faced by the banks whose principal activity is the greatest risk due to the credit granting function is seen as an element of credit risk. No longer produced, and software applications to measure the credit risk has become much simpler.Credit risk is the reliability of methods used to measure the experiences acquired over the years and can be measured with the help of stress tests. Manage the credit risk of each bank is a natural activity. However, credit risk management, whether successful or else I need to measure the success criterion.Manage credit risk is an application that does not contain more financial metric.However, successful management of credit risk a bank's asset quality will be high.For this reason, we chose to study the implementation stage method of data envelopment analysis method for measuring asset quality ratios are used as input and output. In the first part of this study tried to explain the concept of credit risk management, credit risk management objectives and basic elements, and finally settled on the banks credit risk management organization is discussed. The second part, the underlying credit risk management, performance analysis study of financial and non-financial metrics are. In the third section of the state-owned, privately-owned and foreign-owned banks established in Turkey for 2005-2010 using data from the method of data envelopment analysis of credit risk management performance has been analyzed.Keywords: Banks' Credit Risk Management, Performance Analysis, Data Envelopment Analysis, Credit Risk Management Performance Analysis.