Implications of Basel II Process to The Turkish Banking System (This article was published in the World Newspaper on 30.01.2007)
- Published on 30 January 2007
- Written by Gökhan Taşpınar
I-THE BASEL COMMITTEE AND BASEL II DECISIONS
The Basel Committee on Banking Supervision, banking supervision, and in order to ensure that international cooperation in the countries of the G-10 Central Bank Governors in December 1974, by the "banking regulation and audit Practices Committee" (Committee on Banking Regulations and Supervisory Practices). The Committee in countries (Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, Netherlands, Sweden, Switzerland, United Kingdom, United States), the national banking supervision and control authorities and central banks are being represented by senior officials.
The Committee, internal audit evaluating the status of banks in member countries in the creation of problematic principles determinations take into consideration, when assessing the internal control systems of banks supervision and control authorities have been promoting the use of the methods and procedures taking into account these principles to guide all countries a document of surveillance and control activities of the banks ' internal control, by sending wary authorities for sustaining and stabilized the financial system as a whole, plays an active role in the direction of. BIS (Bank for International Settlements) by February, published in 1989, is starting to be implemented in 2001 in the Basel I standards/risk measurement remains unsatisfactory, the final text of Basel II June/2004 with improved banking risk management standards promulgated by creating. The provisions of Basel-II capital are be included how to manage the risks incurred with the shape of the obligation is calculated, and how to evaluate the adequacy of capital and how it covers issues relating and how to explain to public. Basel II risk-sensitive capital adequacy with the decisions together with control and market discipline, risk management, and financial stability, solid foundations intended to be posited.Basel II, the Basel I capital for operational risk as different from the obligation of possession of the basic philosophy of Basel II operational risk management is optimized.In addition, the banks ' Basel II disclosure requirement within the scope of the specific details of the availability of capital.BIS's internal control and internal audit as published by related documents in General, BDDK (Turkish banking regulation and supervision Board )regulation on banks ' Internal Systems issued by the provisions of the relevant documents is seen largely in parallel. BDDK(Turkish Banking regulation and supervision Board) by switching to process on Basel II 30.05.2005 roadmap this roadmap and scope; March/2007 will be published on the Basel II capital adequacy regulation, January/2008 will begin to apply the provisions of Basel II criteria.
II-BASEL II ' REPERCUSSIONS OF THE TURKISH BANKING SYSTEM PROCESS
The likely effects of the Turkish banking sector, the Basel II process as follows.
*Basel-II has been a Banking system more effective and disciplined.
*Risk management by contributing to the implementation of an effective way to develop the contemporary risk management techniques.
*The Basel II process country risk weight 20% to 100% from the end of the year 2004, she was going abroad to have used outside of Turkish banks ' loan of USD 18.4 mia will increase, the amount of the syndicated loans and decrease of the interest.
*100% of the weight of the country together with the Basel II risk-due to be exported by the same risk weight of treasure bonds, bonds, Eurobonds and other borrowing for investing in domestic and foreign banks will bring with it the obligation to the minimum 8% percent in the capital.
*An active risk management within the framework of the concept of "Risk-focused Supervision" will help banks by providing healthy growth contribute to the process. In this sense, a 20% of the total risk factors in the internal control system, which has a weight of adequacy and effectiveness will be extremely important.
*Basel II decisions; effective risk management and internal control system, settling together from "In-house Risk/control culture" will contribute to the creation of the.
*The provisions of Basel II in the context of the implementation of an effective risk management but would be possible with a strong equity structure will increase the banks ' capital requirements, too.Basel II compliance, the difficulty of the process of adapting to the financial structure next to the liquidation of unconsolidated banks or are planning to strengthen banks ' capital structures, a step ahead in this topic and much more powerful foreign banks will speed up the merger process.
*The banks are exposed to risks to sensitive capital adequacy requirements.
*Banks, marketing, operations and allocated between "the principle of separation of powers" will be used more effectively.
*Bank organizational structures and organizational schemes to comply with Basel II.
*The banks intermediary functions will contribute to more effective execution.
*Credit and operational risk approaches, especially with banks ' operational risk measures reviewed in the creation of maximum difficulty on operational risk data base of learners. In addition, each of the Bank in accordance with his own nature "Risk indicators" will contribute to the effective use of it.
*Loan maturity is up to less time to maturity, the structure will be important for loans will be less capital than others.
*Application of active-passive management effectively through the market risk management will become strong and the link between the flow of information.
*Disclosure of information to the public so market discipline of banks will provide.
*The banks will increase their importance to crisis management, improve the understanding of the appropriate risk management in various crisis scenarios will help, too.
* Basel-II decisions review procedures for effectively resolving problems in banks and solution-oriented thinking human resources and computing the result of significant investment in the infrastructure elements will reveal, and this is an additional investment in the short term, the cost to banks.
*The banks ' risk appetite and risk perceptions will bring with it important changes.
*The use of minimum risk level of technological innovation in banks effectively and you will gain more importance to control these risks.
*The process of institutionalization of the banks ' commercial and corporate customers, led to a positive development as it helps improve the quality of the banks will support active.
*Corporate loans for KOBİ(Little and Medium Capasity of the Companies) in the different risks of governmental loans to other major those businesses considering the separation of the company credits and large companies will bring less capital allocation according to the agenda.
*Governmental loans for KOBİ(Little and Medium Capasity of the Companies) in order to reduce the risk weights revealed effects such loans, retail/commercial loans will be considered in the category.
*İn besides the beginning of the implementation of the decisions of the banks, what use to the credit will affect the cost of the credit risk level, direct deposit, and this process will affect the banking sector and the real sector seriously. At this stage, the credit given by the banks and independent auditing organizations companies rating the lower the company's rating for the notes will gain in importance and the Bank's risk level will rise, because the allocation of resources in response to more effectively use capital will reveal the problem. Thus, a company with a low credit rating will increase the cost of the loan, whom.
*Banks ' customer portfolio preferences, in the direction of good, solid companies with high credibility, rating changes, the average interest rate for companies with a good credit rating is lower than the rate of credit disbursement may be in question.
*Lower the cost of credit risk level of high credibility, and concentration of the banks interest to companies, pricing, reputational risk and regulatory capital will increase further the competition between banks in terms of arbitration.
*Along with the implementation of the Basel II provisions so far adopted to guarantee customer credit check-in common with bonds, and on completion of the Group company’s guarantees.
*Scoring of banks, credit allocation and pricing process will help make more effective reviewers. However, the Basel II process, especially the KOBİ (Little and Medium Capasity of the Companies) in accordance with international accounting standards and financial data in a healthy way in the process of registration in connection can be with credit rating under the short term problems.
As a result, a significant part of the independent review of the internal control and risk management functions are met, significant investments were made in the techniques of modern risk management and observed in the Turkish banking sector as Basel II is ready to process the General observed. Basel II banking sector and the economy in the short term, the process of with an added load will bring conviction to the medium and long term with Basel II compliant, supports a strong banking sector and the real economy transparent and been recorded, institutionalized and a healthy real economy of international competition-ready businesses gain momentum in the development of the notion that the country.
THE RESOURCES
1. Dr.KÜÇÜKÖZMEN,C, “Hubble ve Basel II” Bankacıyızbiz web sitesi, 25.10.2005
2.GEDİK, E, “Kurumsallaşmanın Motoru Basel II olacak”, Bankacıyızbiz web sitesi, 27.12.2005
3.BEŞİNCİ, M, “Bankacılığın Basel II’ye Uyum Süreci”, Bankacıyızbiz web sitesi, 27.08.2005
4. “Bankaların Operasyonel Risk Yönetim Sistemlerinin Önünde Sorunlar Var”, Bankacıyızbiz web sitesi, 31.03.2006
5. BAYDAR, C,”Operasyonel Risk ve Basel Süreci”, ”, Bankacıyızbiz web sitesi, 17.02.2006
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11.Prof.Dr.PARASIZ,İ. “Basel II Yönünde Çalışmalar:Yalın Nicel Kontrollerden Nitel Kontrollere Yönelim”, Activeline Dergisi, Ağustos/2004
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13.BALCI, A. “Basel II’nin Uygulanmasına İlişkin Gözönünde Tutulması Gereken Hususlar(Çeviri)”, BDDK Araştırma Dairesi, Temmuz/2004
14.YAYLA, M.-KAYA,Y. “Basel II, Ekonomik Yansımaları ve Geçiş Süreci”, BDDK Araştırma Dairesi, Mayıs/2005
15. “Denetim Açısından Risk Değerlemesi”, Activeline Dergisi, EYLÜL/2000
16. “Bankacılık Sektörü Basel II Gelişme Raporu”, BDDK Araştırma Dairesi, 19.06.2006
17. SERİM, A. “10 soruda ekonomide kurumlar, derecelendirme ve Basel II”, Radikal Gazetesi, 01.12.2006
18. IŞIN, Y. “Basel II’ye Hazırmıyız”, Bankacıyızbiz web sitesi, 07.07.2006
19.YÜZBAŞIOĞLU, N. “Risk Yönetimi ve Bankaların Denetimi”, BDDK Risk Yönetimi ve Gözetim Teknikleri Dairesi, 16.01.2003
20.İnternet Kaynakları
http://www.bddk.org.tr
http://www.bis.org
http://www.tbb.org.tr
http://www.bankaciyizbiz.com
