Use Of Derivative Instruments in The Banking Sector and Its Effects on The Turkish Banking Sector

Authors : Ayça Turan, Hicabi Ersoy

Pages : 120-129

View : 52 | Download : 73

Publication Date : 2024-12-30

Article Type : Research Paper

Abstract :In periods of intense economic uncertainty and financial crises, the banking sector tries to reduce risks and uncertainties. Derivative financial instruments have been developed to meet this need. The aim of this study is to examine the use of derivative financial products using data from 19 banks between 2012 and 2023 and to evaluate their effects on risk and profitability in the banking sector. While profitability indicators include return on assets (ROA), return on equity (ROE), pre-tax profit (loss) / total assets and net profit (loss) / paid-in capital, the variables of “capital adequacy ratio (equity/risk-weighted assets), size of banks (natural logarithm of total assets of banks), net balance sheet position + net off-balance sheet position / equity, financial assets (net) / total assets” have also been included in this study in order to contribute to the literature. According to the analysis results, the use of derivative financial instruments by deposit banks in Turkey has not been found to have a significant effect on profitability and risk. It has been determined that the size of banks and their capital adequacy ratio have a positive and significant effect on profitability and risk from an econometric perspective.
Keywords : Türev Piyasa Araçları, Bankacılıkta Risk, Banka Kârlılığı, Panel Veri Analizi

ORIGINAL ARTICLE URL