Development of Basel criteria and effects of SMEs on credit risk management in Turkish banking sector

The banking sector is one of the leading sectors in terms of national economy. The Basel Committee has been established within the International Bank of Payments in order to generate solutions to the problems and fluctuations in the banking sector. Basel compromises have started to emerge in this context in the following years. In this context, Basel compromises have started to emerge in the following years. Basel compromises have also been implemented in order to find solutions to the crises in global markets. In this context, Basel II and then the Basel III reconciliations are the solutions offered to the markets with a solution-oriented approach. The main theme of this study is to evaluate the impact of Basel criteria on credit risk management in Turkish banking sector and on small and medium sized enterprises. In this context, in the first part of the study, credit risk and credit policies in the banking sector are examined, and in the second part Basel applications are given, and in the third section, literature review about small and medium-sized enterprises, Basel criteria and credit policies are included. It is foreseen that the Basel Criteria create positive effects for the purpose of strengthening the capital structure of banks and prevent the investments that carry risk.