PRACTICES OF BANKS FOR CREDITS TO BE GRANTED TO SMEs

Öz

While a certain definition has not been made for SMEs across the world yet, this definition is determined according to conditions of country where SME operates in. In general, companies defined as SME constitute 80%-90% of the overall economy, SMEs lead and drive both employment and economy. In this study, definition of SMEs made in general or by banks and challenges and advantages to be seen with BASEL III are addressed. Innovations brought by BASEL III and effects of these innovations on SMEs are also mentioned. With a field study conducted for Istanbul province specifically, it is aimed to research the source of financing issues of SMEs and tools they use to get over this problem, possible problems they may face with BASEL III and their thoughts on the transition process. In the light of survey findings, it is concluded that most of enterprises operate as SME clients in Turkey, they go through financial issues and their concerns mostly focus on credit costs with BASEL III, but most of them expect a trouble-free transition to BASEL III.

Anahtar Kelimeler

• SME
• BASEL III
• Banking

PRACTICES OF BANKS FOR CREDITS TO BE GRANTED TO SMEs

Öz

While a certain definition has not been made for SMEs across the world yet, this definition is determined according to conditions of country where SME operates in. In general, companies defined as SME constitute 80%-90% of the overall economy, SMEs lead and drive both employment and economy. In this study, definition of SMEs made in general or by banks and challenges and advantages to be seen with BASEL III are addressed. Innovations brought by BASEL III and effects of these innovations on SMEs are also mentioned. With a field study conducted for Istanbul province specifically, it is aimed to research the source of financing issues of SMEs and tools they use to get over this problem, possible problems they may face with BASEL III and their thoughts on the transition process. In the light of survey findings, it is concluded that most of enterprises operate as SME clients in Turkey, they go through financial issues and their concerns mostly focus on credit costs with BASEL III, but most of them expect a trouble-free transition to BASEL III.

Anahtar Kelimeler

• SME
• BASEL III
• Banking
• Istanbul Province

Kaynakça

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2. Brooke Masters, FSA Eases Bank Rules to Boost Lending, FIN. TIMES (Oct. 10, 2012)
3. Global Economy Of Changes In The Financial Regulatory Framework Donna Borak, Community Banks: Basel III Will Put Us Out ofBusiness, AM. BANKER (Oct. 22, 2012)
4. European Commission, http://ec.europa.eu/enterprise/entrepreneurship /docs/facts_en.pdf: 4) Emily Stephenson, Delay Seen in Implementing US. Bank Capital Rules, Fox Bus. (Nov. 9, 2012)
5. Fischer, Eileen; Reuber, Rebecca (2000). Industrial Clusters and SME Promotion in Developing Countries. Issue 3 of Commonwealth trade and enterprise paper, ISSN 2310-1369. London: Commonwealth Secretariat. p. 1. ISBN 9780850926484. Retrieved 18 November 2020. In most countries, small and medium-sized enterprises (SMEs) make up the majority of businesses and account for the highest proportion of employment
6. Jesse Hamilton & Cheyenne Hopkins, Banks Say Regulators Should Rewrite Basel III Capital Rules, Bloomberg (Oct. 23, 2012)
7. Katia Dmitrieva, Front Running Basel III Spurs Record Bank Offers, CAN. CREDIT (Dec. 24, 2012)
8. Narissa Lyngen, Recent Development, Basel III: Dynamics ofState Interpretation, 53 HARv. INT'L L.J. 519, 522 (2012)

9. https://assets.kpmg/content/dam/kpmg/xx/pdf/2018/12/basel-4-an-overview.pdf
10. http://www.foxbusiness.com/news/2012/l 1/09/delay-seeh-inimplementing-us-bank-capital-rules/
11. https://corporatefinanceinstitute.com/resources/knowledge/credit/credit-analysis-basics/
12. https://www.denizbank.com/bankacilik/kobi-bankaciligi/kobi-kredileri/
13. https://www.bddk.org.tr/ContentBddk/dokuman/duyuru_basel_0001_54.pdf
14. https://www.bis.org/basel_framework/chapter/CRE/22.htm?inforce=20191215
15. http://www.cnbc.com/id/49353389/. 76 See generally Inst. Of Int'l Fin., The Cumulative Impact On The
16. https://ec.europa.eu/eurostat/web/lucas/data/primary-data/2006
17. https://www.prnewswire.com/news-releases/basel-iii-fundamentally-changes-how-asset-managers-are-connected-to-the-financial-system-300206955.html
18. https://ustr.gov/trade-agreements/free-trade-agreements/transatlantic-trade-and-investment-partnership-t-tip/t-tip-12
19. https://www.tbb.org.tr/Content/Upload/konferanssunumlari/127/TBB-TIM_Basel.pdf
20. https://www.worldbank.org/en/topic/smefinance
21. (KOSGEB (2000) Dünya’da ve Türkiye’de KOBİ Tanımları. Ankara KOSGEB Yayınları 12, pg.16)
22. Powell,.A., (2004), ''Basel II and Developing Countries: Sailing through the Sea of Standards", Universidad Turcuato Di Tela and The World Bank
23. Ricardo Fabiani, Dun & Bradstreet, The Business Impact Of 'Basel Iii' 4 (2010)
24. See King & Tarbert, supra note 7, at 3; Ranjit Lall, Why Basel II Failed, and Why Any Basel III Is Doomed 24 (Global Econ. Governance Programme, Working Paper No. 2009/52, 2009)
25. Small Business Administration. "Table of Small Business Standards Matched to North American Industry Classification Codes," Page 36. Accessed June 29, 2020
26. Takeo Hoshi, Implementation ofBasel III in the US will Bring Back the Regulatory Arbitrage Problems Under Basell , VOXEU.ORG (Dec. 23, 2012)
27. Victor Nava, Basel III Hurts Community Banks and Consumers, REAL CLEAR MARKETS (Nov. 1, 2012)