A model aiming at the rating of banks via financial indicators

In this study, it has been tried to anticipate whether the banks could realize their financial obligations arising from their debts and liabilities, by means of developing a model that makes assignments for rating grades of the banks via foreseeing their risk levels.In the first chapter of the study, there is information given about the certain rating organizations in our country and abroad along with the historical evolution of rating as well as the rating concept itself.In the second chapter of the study, the mechanism of the rating process, the wage policies related to this process and the application fields of rating have been elaborated.In the third chapter of the study, the subjects examined during the rating process and the factors and parameters affecting the process of rating are mentioned.In the forth and last chapter of the study, a modeling study is presented by using the financial ratios belonging to the period 2003-2008 of 10 active banks in the Turkish Banking sector whose rating data were obtainable.In order to measure the validity and performance of the proposed model within the scope of the study, the rating grades given by the model to the banks and the rating grades given by the international rating organizations to the same banks in real life cases have been compared for both the banks which are in the data set and for the ones out side the data set. It is concluded that it is possible to anticipate the rating grades of the banks given to them according to their risk levels with some marginal deviations, as shown by the results obtained in this study.