Basel standards and its effects on the banking sector

When the banking sector in Turkey is examined, it is seen that banks have faced many financial crises since the first years of their establishment. Along with these crises, new rules were determined as a precaution in the banking sector. With these rules, it is planned to protect the banking sector and increase the reliability of the banking sector. These rules were created by the Basel committee. Basel I, Basel II and Basel III have been implemented as a continuation of each other. While the Basel I standard was implemented between 1992 and 2011, the Basel II standards started to be implemented in 2012. The implementation of Basel II standards still continues. Although it is planned to switch to the Basel III standard by 2022, it is not available in practice. This study aims to examine the situation of Basel standards put into practice on banks over the years. The study consists of three parts. In the first part, the development of the banking system and the risks encountered in the banking sector are mentioned. In the second part, the crises faced by the banks and the Basel standards that emerged as a result of these crises are discussed. In the third part, the effects of Basel standards are analyzed comparatively in terms of the Turkish banking sector between the years 2002-2021 and in terms of the capital adequacy ratios of deposit banks operating in these years . Capital adequacy ratios of the Turkish banking sector, capital adequacy ratios according to bank types and banks with the highest-lowest ratio of each bank type are examined. According to the results obtained in the study, it is understood from the high capital adequacy ratios that the Basel I standard cannot adequately protect the banks against risks. It is observed that as of 2012, when the Basel II standard was started to be implemented, the capital adequacy ratios of banks decreased compared to the previous years. The results obtained are given in the third part of the study and the results section. Keywords : Basel Standards, Banking Sector, Capital Adequacy Ratio , Deposit Banks.