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Credit System And Credit Guarantee Programs

Author

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  • Turgay GECER

    () (Istanbul Sabahattin Zaim Universitesi)

Abstract

Credit system is an integrated architecture consisted of financial information, credit rating, credit risk management, receivables and credit insurance systems, credit derivative markets and credit guarantee programs. The main purpose of the credit system is to provide the functioning of all credit channels and to make it easy to access of credit sources demanded by all of real and legal persons in any economic system. Credit guarantee program, the one of prominent elements of the credit system, traditionally, covers a fixed percentage of credit risk exposure. In this study, it is proposed that the expected losses should be added up to credit price, instead of the fixed coverage ratio, and the unexpected losses should be covered by the credit guarantee programs.

Suggested Citation

  • Turgay GECER, 2012. "Credit System And Credit Guarantee Programs," Istanbul Commerce University Journal of Social Sciences, Istanbul Commerce University, vol. 21(1), pages 215-228.
  • Handle: RePEc:icu:journl:v:21:y:2012:i:1:p:215-228
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    File URL: http://www.ticaret.edu.tr/RePEc/icu/journl/s21/215_228.pdf
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    References listed on IDEAS

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