VULNERABILITY ANALYSIS OF TURKISH BANKS USING STRESS TESTING AND INTERNAL CREDIT RATING APPROACH

Masoud GHAZAVİ; Sema Bayraktar TUR

doi:https://doi.org/10.17261/Pressacademia.2020.1207

Makale detayları

VULNERABILITY ANALYSIS OF TURKISH BANKS USING STRESS TESTING AND INTERNAL CREDIT RATING APPROACH

Yazarlar:

Masoud GHAZAVİ | Sema Bayraktar TUR

Yayıncı:

PressAcademia

Ana Başlıklar:

Yönetim | Genel yönetim

Dergi:

Journal of Economics Finance and Accounting 2020 Vol.7 Issue 2, pp.103-119

Belge Tipi:

Makale

Yayın Tarihi:

6/2020

Belge Dili:

İngilizce

Document ID (Org No.):

2000738514

Sıklık:

Üç Aylık

eISSN:

2148-6697

DOI:

https://doi.org/10.17261/Pressacademia.2020.1207

Özet:

 

Purpose- This study examines the performance and financial vulnerability of twelve Turkish banks for 2019. 
Methodology - Stress testing identifies the impact of extreme expected and unexpected shocks to a bank’s capital, provides an assessment of its financial strength to withstand shocks and helps to spot emerging risk(s) and uncover weak spots in the financial institution. It enables banks in identifying their vulnerabilities at an early stage. In addition to stress testing, as for Internal Credit Rating (ICR), some financial ratios have been selected to assess the performance of each bank within banking industry. 
Findings- All banks in 2019 are within the standard classification of ICR rating except for Şekerbank. However, results show that not all banks are resilient to stress testing implemented in the study.
Conclusion- This study shows that Turkish banks are on the knife edge. The results show that the critical factor that may result in the insolvency of the banks is NPLs. Thus, Turkish regulators should take measures that would prevent banks to take any action that would increase their NPLs both in the short and long term.

Makale detayları

VULNERABILITY ANALYSIS OF TURKISH BANKS USING STRESS TESTING AND INTERNAL CREDIT RATING APPROACH

Yazarlar: Masoud GHAZAVİ | Sema Bayraktar TUR

Yayıncı: PressAcademia

Ana Başlıklar: Yönetim | Genel yönetim

Dergi: Journal of Economics Finance and Accounting 2020 Vol.7 Issue 2, pp.103-119

Belge Tipi: Makale

Yayın Tarihi: 6/2020

Belge Dili: İngilizce

Document ID (Org No.): 2000738514

Sıklık: Üç Aylık

eISSN: 2148-6697

DOI: https://doi.org/10.17261/Pressacademia.2020.1207

Sayı

Yazarlar:

Masoud GHAZAVİ | Sema Bayraktar TUR

Yayıncı:

PressAcademia

Ana Başlıklar:

Yönetim | Genel yönetim

Dergi:

Journal of Economics Finance and Accounting 2020 Vol.7 Issue 2, pp.103-119

Belge Tipi:

Makale

Yayın Tarihi:

6/2020

Belge Dili:

İngilizce

Document ID (Org No.):

2000738514

Sıklık:

Üç Aylık

eISSN:

2148-6697

DOI:

https://doi.org/10.17261/Pressacademia.2020.1207