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

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dc.contributor.authorGhazavi, Masoud
dc.contributor.authorTur, Sema Bayraktar
dc.date.accessioned2025-03-15T05:22:55Z
dc.date.available2025-03-15T05:22:55Z
dc.date.issued2020
dc.departmentBilgi Üniversitesi
dc.description.abstractPurpose- 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.
dc.identifier.doi10.17261/Pressacademia.2020.1207
dc.identifier.endpage119
dc.identifier.issn2148-6697
dc.identifier.issue2
dc.identifier.startpage103
dc.identifier.urihttps://doi.org/10.17261/Pressacademia.2020.1207
dc.identifier.urihttps://hdl.handle.net/11411/9680
dc.identifier.volume7
dc.language.isoen
dc.publisherPressAcademia
dc.relation.ispartofJournal of Economics Finance and Accounting
dc.relation.publicationcategoryMakale - Ulusal Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/openAccess
dc.snmzKA_DergiPark_20250601
dc.subjectPerformance analysis of banks
dc.subjectinternal credit rating (ICR)
dc.subjectstress testing (ST)
dc.subjectsensitivity analysis
dc.subjectscenario analysis
dc.titleVULNERABILITY ANALYSIS OF TURKISH BANKS USING STRESS TESTING AND INTERNAL CREDIT RATING APPROACH
dc.typeArticle

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