Effects of commercial credits to the growth in Turkey after establishment of BRSA

Credit can be defined as providing the purchasing power to real persons and companies that the banks trust, provided that they are collected at the end of a specified period of time. In evaluating the companies, the information obtained from other links in addition to the financial data of the company is evaluated in accordance with the management approach of the bank. Non-payment of principal and non-payment of interest is expressed as the credit risk. In order to minimize the credit risk, the party demanding credit must be properly assessed. As a result of the set of analyses, it is determined whether the loan offer will be prepared or not. With the credit needed by the corporations, firms increase their productivity and thus contribute to the growth of the economy. The credit is generally classified as cash and non-cash credits. The lending process –before and after the disbursement- is extended from the receipt of the loan request to the collection of the loan. At this point, bank personnel should have a good knowledge of the sector and economy, policies, regulations, procedures and work flow and must have enough training to fulfill their duties. It is necessary to clarify the purpose of the loan application and the purpose of its use, and to provide answers about it. Thus, it will be ensured that to be foreseen the source of the risk to be encountered, the issues to be considered in financial analysis and intelligence stages and the correct results are obtained. When requesting an appointment, the names and titles of the people to be interviewed, the place of the interview and the full address should be obtained correctly, and the business cards, brochures or documents to be shared with the customer should be kept with the branch personnel. The document set for loan application is provided completely in the process. The firm's financial position, operating results and trends led to a positive or negative credit demand. If credit is allocated, the transition to credit management process occurs. The primary objective here is to minimize the number of bad loans and to carry out activities within the framework of maximum profitability. After 1980, Turkey has entered a process of financial liberalization with the liberalization of imports and exports. This process is considered as the beginning of the innovations when evaluated in terms of financial structure. The financial liberalization in terms of banking system means reducing controls and opening up the national economies. With the financial liberalization, the dangers leading to the banking crisis have increased. Due to inadequate regulation of the financial liberalization process, Turkey, has faced with the economic crisis in 1994, in 2000 and in 2001. Turkey, in May 2001, went to drastic changes in economic policy by announcing "Transition to the Strong Economy Program". The restructuring process in the banking system started with the "Transition to the Strong Economy Program" and the "Banking Sector Restructuring Program" was announced in 2001. With the establishment of the Banking Regulation and Supervision Agency (BRSA), confidence in the banking system has been fulfilled. With the emergence of the BRSA, a different structure was introduced in the functioning of the banks and in the banking sector.