Risk management in commercial banks and effects of Basel II criterias

Place and importance of the intervening banks, in financial markets, are major. Even globally or in Turkey commercial banks are forming most of the market share. Maintaining the facilities without taking risks is seem to be impossible so that risk management issue subjects major importance. The most important risk that commercial banks bearing is loan risk because loaning is the fundamental facility of those banks. In order to get success bank is supposed to manage that risk effectively. New capital adequacy compromise which is also named as Basel II would have major effects on risk management which is formed by Basel Basel Committee on Banking Supervision (BCBS), maintaining its facilities under the control of Bank For International Settlements (BIS). It is aimed to provide stability in banking and economy by increasing the risk sensitivity within three structural blocks at Basel II. In this case, possible effects of the Basel II criteria on commercial banks aside Turkish Banking System?s level of compatibility to Basel II criteria is stated. Recommendation is done by observing the credit risk management facilities of commercial bank proceeding in Turkey.Key Words:1. Risk2. Risk Management3. Credit4. Credit Risk Management5. Basel II