Examples of assets management companies in the world countries and policy recommendations for the development of the asset management companies in Turkey

Banks are in the position of a locomotive with the function of collecting the savings in the economy as deposits and using them as loans to the people/institutions/establishments that need it. Banks' malfunction of the flow of funds due to the non-performing loans can cause to get in trouble especially itself, all banks, and other economic units in which they interact. Asset management companies are put into action here, and prevent the growing of this situation by removing the troubled assets which cause the deterioration of the active structure of the banks. Asset management companies, in Turkey, are the companies that take over non-performing loans of primarily banks, Savings Deposit Insurance Fund, and financial institutions by way of assignment of claims bearing the risk arising from these assets and try to collect non-performing loans. These companies ensure the institutions and organizations mentioned in the regulation concentrate their main activities by deducting the defaulted receivables which cause a waste of time and money, and which also a cost to the institutions. They try to make a profit by buying the receivables from the institutions with lower prices than collecting from the debtor with a higher price. In order to facilitate the collection of the loan and compromise with the borrower, they are able to use the capability of changing the interest rates and extending the period of receivables they took. The aim of this study is to examine the role of asset management companies in undertaking the task of sorting distressed loans caused by internal or external factors from balance sheet of the banks that have an important function in the economic system with mediating the fund flow within the financial system and also considering other country applications in the World, and taking into account face to face interviews, the issues mentioned in printed media news, and articles, is to present policy recommendations for the sector's development under the Turkey's conditions contains within itself. Keywords:Asset Management Companies, Non-performing Loans, Applications of Asset Management Companies In The World, Asset Management Companies In Turkey, Recommendations for the Development of the Sector