Basel II

Basel II will be effective in 2009 in Turkey,

With Basel II Banks will

1-Ensure that capital allocation is more risk sensitive;
2- Separating operational risk from credit risk, and quantifying both;

First step banks will take will be calculation of credit risk, operational risk and market risk then to move on to calculating systemic risk, pension risk, concentration risk, strategic risk, reputation risk, liquidity risk and legal risk.

All of these analysis will only result in more analysis and less funding on banks' point of view and thus less economical activity and expensive funding. So Loss - Loss situation for Turkey and developing countries.