Risk rating of foreign-invested deposit banks in Turkey banking system: Application of VIKOR model based on CAMELS

The first banking activity in Turkey was initiated by Istanbul Bank founded by foreign capital in 1847. In the course of time going on from that time to the proclamation of the republic the foreign invested banks have played a significant role both in money market and in credit market. Because of the national banking insight adopted with the proclamation of the republic, the activities of foreign invested banks remained limited during the period continued until 1980, From the beginning of 1980s, however, owing to the deregulation policy, the number of foreign invested banks has become increased. Moreover, with 'the Restructuring Program in Banking Sector" putting in practice in 2001 after the April 1994, November 2000 and February 2001 economic crises, Turkish Banking System gained a more reliable banking structure. Beginning from 2005, the number and the active stake of the foreign invested banks in Turkish banking system have dramatically increased. The stake of the foreign capital banks in Turkish banking sector has reached %25,1 in percentages and numericalIy, 20 banks out of total 33 banks in the sector are foreign invested deposit banks.