Credits in commercial banks and the factor analysis which effects

Generally the banking sector whose aim is collecting deposits, the most important function is financing the deposits that they have collected to economy at loaning process. Banks are indispensable foundations and companies. The commercial banks have lots of roles converting little depositions to capitals in money, credits and capital markets. In our country one of the most effective sectors is banking sector. At the same time, the connected banks realized the big part of the process volume. Nowadays, commercial banking develops rapidly. Banks improve new methods and techniques in this developing process and digress from the classical banking comprehension. This movement in banking sector brings competition in this sector. Although, personal financing companies comes out in this sector and for other commercial banks they becomes important rivals. The effects of these new personal financing companies to the banking market, is directed the banking sector to find new services and new techniques so rivalry increased. In last years, the rivalry environment that develops rapidly makes the banks finding funds which have minimum costs and forces to use these fund resources profitably. Normally banks aimed the highest profit margins with purifying these funds from the costs. That?s why banks wants to obtain these fund resources in long terms and in low interests, at the same time wants to sell credits in low interests to their customers with minimizing credit costs. Minimizing source costs to the lowest value, makes advantages for market also their customers using these obtained sources. There are lots of factors that effect the banks? source costs. Some of these factors; interests that are being paid to deposits, deposit response rate, policies of money and capital, funds and taxes, credit risks and enterprise costs that banks have to be folded. The banking sector which has important position in country economy, has to attach importance to determined points for deciding credit policies. In this case banks have to develop alternative credit models and capital market should be improved rapidly and they have to prevent the unjust rivalry by assembling audition mechanisms and improve legal arrangements. With an effective credit management, banks will improve their profit margins and the other side with short term credits that they were been used to different sectors they assistance to development and enlarging of country economy. At the same time they assistance to external trading by increasing alternative credit variety Key Words: Bank, Credit, Cost, Risk