CREDIT PORTFOLIO SELECTION ACCORDING TO SECTORS IN RISKY ENVIRONMENTS: MARKOWITZ PRACTICE
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 9
Abstract
In this study, it was researched that how the rate of repayment of loans will be increased and how the credit risk will be minimized in banking sector, by using Markowitz Portfolio Theory. Construction, textile and wholesale and retail sectors were examined under the central bank data. Portfolio groups were selected and risks( variances of Portfolio groups) were evaluated according to Markowitz portfolio theory. Markowitz portfolio theory is effective than the other portfolio selection instruments. Although Classical risk measurement tools measure risks, but they do not be able to answer how the risks can be reduced. On the other hand, Markowitz portfolio model, which is used in this study, show how the risks can be reduced.
Authors and Affiliations
Halim Kazan| Gebze Institute of Technology, School of Business Adminstration ,Department of Operational Research, Gebze- Kocaeli Turkey, Kültigin Uludağ| Central Bank of the Republic of Turkey-Ankara/Turkey
Keywords
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- EP ID EP2075
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