Globalization of financial markets and reflexion to Turkish small and medium scale enterprises: Basel II

Abstract

Bank for International Settlements (BIS) is an international enterprise that had been formed by central banks of various countries in 1930. A working group called "Basel Committee" had been formed within BIS in 1974 in order to make studies about banking. The purpose of financing function is to get the funds in optimum conditions that firm needs and provide the usage of these funds effectively. As from the early 20th Century in USA and Europe, significant improvements had materialized in the field of financial management. In recent days, significant improvements had materialized in banking, risk management application and technique, in financial markets and control approach as they had in other fields as well. Credit institutions and the enterprises which demand credit will be affected directly from this application by the start of adhibition of Basel II criteria. In this study, the effects of Basel II application on Turkish Small and Medium Scale Enterprises will be examined.