Credit risk and credit management in Turkish banking system: The case of Turkiye Garanti Bank

Attention has been paid to the credit risk of the Turkish banking sector for many years. However, the banks have needed to rethink their credit strategies once again because of the increasing competition in the banking sector with the improvement of technology that is causing some results in terms of risk taking. The banks should get organize a sound risk-management instead of remaining of taking the risk. Indeed, it is the inevitable fact that the success of financial institutions depends on taking risk and having a powerful risk management system. In the light of this reality, it was aimed to explain the measurement of credit risk with the management of credit risk and the banking ratios in the present study. Although there are many studies on the management of credit risk and credit risk management, there is no study examining the credit risk switches of Türkiye Garanti Banks, and therefore it is expected to contribute to the literature with the investigation of Türkiye Garanti Bank A.Ş.'s credit risk switches. This study is taken up in the form of five sections, the first section of chapter is introduction to the study. The risks in the banking sector defined and grouped and the concept of risk have been examined in the second part of the study. In the third part of the study the definition of credit risk by taking credit risk, formation and elimination of credit risk measurement have been discussed. It also focuses on credit risk measurement banking ratios . Turkey Garanti Bank is the fourth part of the study of the credit risk of changes in the years 2007-2012 were examined with the help of the banking ratios and Turkey, Garanti Bank's risk management is explained in the forth chapter. The "Conclusion and Recommendations" section is the fifth chapter that overall assessment of the study made. As a result of this study, Turkey Garanti Bank A.Ş. in accordance with international standards, the credit risk is measured and monitored, all risk managements were continued in parallel with the Basel II regulations. Key Words: Bank, kredit, risk, rasyo, risk management