The Importance of stuff education on camel rating process at Turkish banking sector

ABSTRACT In recent times especially developing countries must apply some reforms and policies which help them to raise the capital necessary to help their industrial development and become a part of the globalized world. To realise this aim credible information flow to investor must be done. The flow of the information is important for it helps the markets work efficient by taking the decisions quickest way. Rating process, which is an independent evaluation of the borrowers, institutions or countries' ability to fulfil the obligations caused by the payment of interests and principal at the maturity, is important because of the role it takes in the flow of the information. In theory rating is usually done in order to evaluate the repayment ability of the non-financial corporations, financial institutions, including banks' obligations caused by not only issuing securities but also from other debts. But it is easily seen that in practice the countries use this process to evaluate the debt credibility in order to take place in international financial markets. The rating agencies are important for giving the information to the investors and disclosing the results of their analysis to the public about the ability of the fulfilling the obligations arised from the debts by means of symbols. Rating aids the investor being a guide about if he gets the proper return for the risk he takes. Turkish financial sector who has experienced a positive development has taken an important place in the international markets with its institutions, authorities, organisations and instruments. It is obvious that parallel to the developments in Turkey, the need for the independent rating agencies is increasing day by day when it is compared with the developed countries. Especially in USA and other developed countries, rating is a commonly used instrument to evaluate the credibility of the firms. Although in recent years some Turkish banks are rated by the most known rating agencies such as Standard & Poor's, Moddy*s, it could not reach the desired level because of the lack legal regulations. The need for rating will increase in a near VIfuture as it is having the key role In providing the efficient market mechanism and making the public be informed. From this point of view, definition of rating, development of this process, rating agencies and importance of rating on the financial markets are examined in this study. As banks are having an Important place In Turkish financial sector, the risk In banking sector is analysed, the criterias used by the most known rating agencies is studied and it is applied to Turkish Banking Sector. By the light of the research, effects of the rating on the financial markets and the advantages it will bring for the Turkish banking sector are discussed and given some proposals for the education of the stuff. vn