When a retrospective assessment is

When a retrospective assessment is made towards the credit risk pertaining to the banking sector in
Northern Cyprus, it is understood that the credit risk had a considerable unfavorable contribution
to the Turkish origin banking crisis taken place during the period of 1999-2000. Fundamental
credit risk indicators support this conclusive evaluation. Such that; during the said period the credit
risk ratios such as: total credits/total deposits, total credits/total equity and foreign currency deposits/total
credits, appeared to have excessive increases. Following the crisis the credit risk showed
noticeable decline due to the structural and administrative measures as evidenced by the ratios of
“non-performing loans/total loans” and “provision for loan losses/non-performing loans” shown in
Figure 6. Just after the crisis (2001) the ratio of “non-performing loans/total loans” appeared to be
20.90% while for the year of 2005 this ratio favorably dropped to the minimum level of 7.76%.
In spite of the positive developments observed the following reactive and proactive measures are
recommended regarding the credit risk management:
i As part of the proactive strategic management term structure of loans and deposits should be
harmonized.
i Not only the increase of the total foreign currency credits within the total amount of the credits
observed during the latest years indicates the increase of the credit risk but it also increases
the foreign exchange risk within the scope of “uncovered interest arbitrage”. This foreign exchange
rate risk can be hedged especially through off-balance sheet item such as forward, options
and swap agreements.
i Special attention should also be given to scale structure in the banking sector so as to manage
credit risk. For the first five banks constituting the 71.82% of the total amount of credits for
the year of 2005, the ratios of “non-performing loans/total loans” and the “total
loans/deposits” were realized as 6.06% and 58.9% respectively. On the other hand, for the
first ten banks constituting 89.70% of the total credits, these ratios were realized as 7.31% and
47.92% respectively. For the sector as a whole, on the other hand, the said ratios were 7.76%
and 43.19% respectively (TRNC Central Bank, 2006, p. 67). This situation though, indicates
that the credit risk is relatively lower due to increased scale structure whereas their financial
effectiveness is considered to be relatively higher.
i Despite the fact that, during the latest years, there have been positive developments towards
decreasing credit risk, as indicated through the ratio of the total credits/total equity capital, the
requirement of the stronger capital structure happened to come out in two ways. These are:
coming into line with the acquis of European Union (EU) and meeting the criteria for Basel II.
It should be pointed out that EU also officially applies almost all aspects of Basel framework.
In case of a probable solution to the Cyprus problem, Northern Cyprus will inevitably take
necessary measures to comply with the EU principles and policies, and to adjust itself to the
criteria of Basel II, like the banking sector in Turkey. The amount of the initial capital requirement
for establishing a new bank in the TRNC has now, according to the new legislation
that is in force as from 14th February 2001, been increased from 50 thousand New Turkish Liras
to 2 million US dollars. In comparison, this amount in Southern Cyprus is 3 million Cyprus
pounds (Banking Laws of the GCA, 66(1)/1997, Art 20.21) and for the new financial institutions
operating within the European Union, is 5 million Euros (ùafaklı, 2003).

Hasil (Bahasa Indonesia) 1:

Ketika sebuah penilaian retrospektif dibuat terhadap risiko kredit yang berkaitan dengan sektor perbankan diSiprus Utara, dapat dipahami bahwa risiko kredit memiliki kontribusi yang cukup menguntungkankrisis perbankan asal Turki terjadi selama periode 1999-2000. Dasarindikator risiko kredit mendukung evaluasi ini konklusif. Sedemikian rupa sehingga; selama periode kreditrisiko rasio seperti: jumlah kredit total deposito, total kredit/total ekuitas dan mata uang asing deposito/totalkredit, tampaknya memiliki berlebihan meningkat. Setelah krisis risiko kredit yang menunjukkanpenurunan nyata karena tindakan struktural dan administratif sebagaimana dibuktikan oleh rasio"non-performing loans pinjaman total" dan "penyediaan untuk pinjaman kerugian/non-performing loans" yang ditampilkan dalamGambar 6. Hanya setelah krisis (2001) rasio "non-performing loans pinjaman total" tampaknya20.90% sedangkan untuk tahun 2005 rasio ini menguntungkan jatuh ke tingkat minimum 7.76%.Meskipun perkembangan positif mengamati langkah-langkah berikut reaktif dan proaktifdirekomendasikan mengenai pengelolaan risiko kredit:saya sebagai bagian dari struktur manajemen strategis proaktif istilah pinjaman dan deposito harusharmonis.saya tidak hanya peningkatan kredit total Valas dalam jumlah total kreditdiamati selama terbaru tahun menunjukkan peningkatan risiko kredit tetapi juga meningkatkanthe foreign exchange risk within the scope of “uncovered interest arbitrage”. This foreign exchangerate risk can be hedged especially through off-balance sheet item such as forward, optionsand swap agreements.i Special attention should also be given to scale structure in the banking sector so as to managecredit risk. For the first five banks constituting the 71.82% of the total amount of credits forthe year of 2005, the ratios of “non-performing loans/total loans” and the “totalloans/deposits” were realized as 6.06% and 58.9% respectively. On the other hand, for thefirst ten banks constituting 89.70% of the total credits, these ratios were realized as 7.31% and47.92% respectively. For the sector as a whole, on the other hand, the said ratios were 7.76%and 43.19% respectively (TRNC Central Bank, 2006, p. 67). This situation though, indicatesthat the credit risk is relatively lower due to increased scale structure whereas their financialeffectiveness is considered to be relatively higher.i Despite the fact that, during the latest years, there have been positive developments towardsdecreasing credit risk, as indicated through the ratio of the total credits/total equity capital, therequirement of the stronger capital structure happened to come out in two ways. These are:coming into line with the acquis of European Union (EU) and meeting the criteria for Basel II.It should be pointed out that EU also officially applies almost all aspects of Basel framework.In case of a probable solution to the Cyprus problem, Northern Cyprus will inevitably takenecessary measures to comply with the EU principles and policies, and to adjust itself to thecriteria of Basel II, like the banking sector in Turkey. The amount of the initial capital requirementfor establishing a new bank in the TRNC has now, according to the new legislationthat is in force as from 14th February 2001, been increased from 50 thousand New Turkish Lirasto 2 million US dollars. In comparison, this amount in Southern Cyprus is 3 million Cypruspounds (Banking Laws of the GCA, 66(1)/1997, Art 20.21) and for the new financial institutionsoperating within the European Union, is 5 million Euros (ùafaklı, 2003).

Hasil (Bahasa Indonesia) 2:

Ketika penilaian retrospektif dibuat terhadap risiko kredit yang berkaitan dengan sektor perbankan di
Siprus Utara, dapat dipahami bahwa risiko kredit memiliki kontribusi yang cukup besar tidak menguntungkan
untuk krisis perbankan asal Turki terjadi selama periode 1999-2000. Fundamental
indikator risiko kredit mendukung evaluasi konklusif ini. Seperti yang; selama periode mengatakan kredit
rasio risiko seperti: Jumlah kredit / total simpanan, total kredit yang / total ekuitas dan mata uang asing deposito / total
kredit, ternyata memiliki kenaikan yang berlebihan. Setelah krisis risiko kredit menunjukkan
penurunan nyata karena tindakan struktural dan administratif sebagaimana dibuktikan dengan rasio
"kredit bermasalah / total kredit" dan "penyisihan kerugian pinjaman / kredit bermasalah" yang ditunjukkan pada
Gambar 6. Hanya setelah krisis (2001) rasio "non-performing loan / total kredit" tampaknya
20,90% sedangkan untuk tahun 2005 rasio ini menguntungkan turun ke tingkat minimum 7.76%.
Terlepas dari perkembangan positif mengamati reaktif berikut dan langkah-langkah proaktif yang
direkomendasikan mengenai manajemen risiko kredit:
i Sebagai bagian dari struktur jangka manajemen strategis proaktif dari pinjaman dan deposito harus
diselaraskan.
i Tidak hanya peningkatan dari total kredit mata uang asing dalam jumlah total kredit
yang diamati selama tahun terbaru menunjukkan peningkatan risiko kredit tetapi juga meningkatkan
risiko valuta asing dalam lingkup "terbongkar arbitrase bunga". Valuta asing ini
risiko tingkat dapat lindung khususnya melalui off-balance sheet item yang seperti maju, pilihan
dan perjanjian swap.
I Perhatian khusus juga harus diberikan untuk skala struktur di sektor perbankan sehingga dapat mengelola
risiko kredit. Untuk lima bank pertama yang merupakan 71,82% dari jumlah total kredit untuk
tahun 2005, rasio "non-performing loan / total kredit" dan "total
pinjaman / simpanan" yang direalisasikan sebagai 6.06% dan 58,9% masing-masing . Di sisi lain, untuk
pertama sepuluh bank merupakan 89,70% dari total kredit, rasio ini direalisasikan sebagai 7.31% dan
masing-masing 47,92%. Untuk sektor secara keseluruhan, di sisi lain, rasio kata yang 7,76%
masing-masing dan 43,19% (Bank Sentral TRNC, 2006, hal. 67). Situasi ini meskipun, menunjukkan
bahwa risiko kredit relatif rendah karena struktur skala meningkat sedangkan keuangan mereka
efektivitas dianggap relatif lebih tinggi.
I Terlepas dari kenyataan bahwa, selama tahun-tahun terakhir, telah terjadi perkembangan positif terhadap
penurunan risiko kredit, sebagai ditunjukkan melalui rasio total kredit / total modal, yang
kebutuhan struktur modal kuat terjadi untuk keluar dalam dua cara. Ini adalah:
datang ke sejalan dengan acquis dari Uni Eropa (UE) dan memenuhi kriteria untuk Basel II.
Ini harus menunjukkan bahwa Uni Eropa juga secara resmi berlaku hampir semua aspek kerangka Basel.
Dalam kasus solusi kemungkinan untuk masalah Siprus , Siprus Utara pasti akan mengambil
langkah-langkah yang diperlukan untuk mematuhi prinsip-prinsip dan kebijakan Uni Eropa, dan menyesuaikan diri dengan
kriteria Basel II, seperti sektor perbankan di Turki. Jumlah kebutuhan modal awal
untuk mendirikan bank baru di TRNC kini, menurut undang-undang baru
yang berlaku sejak 14 Februari 2001, telah meningkat dari 50 ribu Liras Turki Baru
2 juta dolar AS. Sebagai perbandingan, jumlah ini di Southern Siprus adalah 3 juta Siprus
pound (Hukum Perbankan GCA, 66 (1) / 1997, Seni 20,21) dan untuk lembaga keuangan baru
yang beroperasi di dalam Uni Eropa, adalah 5 juta Euro (ùafaklı 2003 ).