This study has the objective of arguing the fact that the Small and Medium-sized Enterprise (SME) lending is developing, relevant to the evolution of the business environment and banking sector, during the period between 2001 &amp / #8211 / 2006 years. The thesis is testing this claim on two data sets. First / the financial data of CBRT during the period of 2001 - 2006 is evaluated. Then, the SME data of a Bank is evaluated. The thesis also covers the arguments on SME definition, the literature survey for SME development policies, SME lending infrastructure, the banking sector, as the main source of finance for SME, and the SME profile of Turkey. The thesis concludes on two things: The share of SMEs in the total credit volume is rising during the period between 2001 &amp / #8211 / 2006 years. And the share of medium-term credits is rising, while the short-term credits&amp / #8217 / is decreasing. In addition to these, the study criticizes the recent SME definition of KOSGEB.