Abstract:

It is important for companies that are the most important actors in economic life to manage the funding resources effectively. While the nature of their financial structures affects the success of this management, companies may often face financial disadvantages for some internal or external reasons. The banks that come to the head of the funding providers of companies play an active role in the growth and development of the country’s economies in accordance with the task they take on to carry out economic activities. However, the risks that the banks are exposed in the same direction as they take on this task are increasing and a successful risk management is also becoming mandatory to maintain their performance. While it is possible to diversify the risks that banks have to manage, the most fundamental of these risks is the risk caused by the non-refunding of the loan, which is their main product. Considering that corporate loans have a significant value within bank portfolios, the assessment of corporate performance is the first step of the measures that the banks will take. In this context, the aim of the study is to create a general framework on bank credit risk and provide an example of the risk prediction models developed in this regard. While the study uses a sample covering the years 2011-2018, it has been attempted to develop a credit risk model through the performance of companies involved in the manufacturing industry. The results found that the profit margin of the activity, the share of the active assets, the share of the commercial debt in the passive and the rates indicating the financial debt level according to net sales are effective in the performance assessment of the manufacturing industry companies.