Risk management in banks based on Basel ? II criteria

The crises in Banking sector has a negative effect on profit of banks. Because of this, some organiztions like BIS, IMF, World Bank and International Finance Institute search method in order to inrease financial stability in market. When the market face extraordinary situation, risk management can able to calculate the size of risk, define risks, quantify the risks before this extraordinary situation and that?s why the risk management gains importance in market. Also right risk management causes strong capital structure.In this study, the effect of Basel-II on the audit and the risk management process of Banking sector in Turkey is examanined and also calculate/compare the credit risk, market risk, operational risk (by using 3 different method) and the capital ratio of one of Turkish Bank that have operations in private sector. On the other hand, two different banks? -that has similar asset size and also also operate in private sector- credit risk, market risk, operational risk and the capital ratio calculated and compared. And finally the capital ratio of Banks that has founded and display activity in Turkey and some independent variables can try to be compared.