There is a debate on the relation between profitability and credit risk management on the finance literatüre and this presents a subject of high signifıcance to finance professionals and scholars. As credit fınancing is the main activity of every bank (key players in the money market) this topic preserves its importance. Furthermore, the argument can be supported by the six majör kinds of risk of the bank theory and these risks are connected with credit policies of banks. These are portfolio risk, credit risk, credit deficiency risk, interest risk, trade union risk and operating risk. Hovvever the most signifıcant of these risks is the credit risk, therefore it is worthwhile to give it a particular attention in financial management research.

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