Basel Regulations, Economic Capital and Their Implications for the Turkish Banking Industry = Basel Kuralları, Ekonomik Sermaye ve Bu Kavramların Türk Bankacılık Sektörü İçin İşaret Ettiği Hususlar

• Main Author: Göksel TİRYAKİ
• Format: Article
• Language: English
• Published: Dogus University 2009-01-01
• Series: Doğuş Üniversitesi Dergisi
• Subjects: Basel Banking Rules; Economic Capital; Turkish Banking System; Basel Bankacılık İlkeleri; Ekonomik Sermaye; Türk Bankacılık Sistemi
• Online Access: http://journal.dogus.edu.tr/index.php/duj/article/view/62

Capital is one of the crucial financial sources of fund for all economic agents. It is also a basic financial indicator that should be measured and managed, especially for banks. Basel Banking Committee has been publishing a number of standards for almost two decades in order to establish harmonized capital requirement for banks, which set basis for regulatory capital. On the other hand, economic capital, which is another concept in managing capital in banks, is a consequence of theoretical studies and risk management and capital requirement practices. It is defined as the optimum bank capital level measured by quantifying all relevant risks involved. In this paper, these capital regulations are explained and implications of Basel Rules and economic capital models for The Turkish Banking Industry are summarized.