Factors affecting bank's use of derivative products

Derivative products are an important risk management tool that can be used especially when the market is highly volatile. Banks, one of the most important components of Turkey's financial system, have turned to portfolio derivative instruments to minimize the risks and uncertainties of fund and asset management since the 2000s. In this framework, in this study, taking into account the 2008Q1-2022Q1 periods, quarterly data and 57 period data, the amount of derivatives and asset size, GDP, CPI, interest rate, loans, liquidity rate, deposits, net interest margin, non-performing loans, special provisions, capital The relationship between the variables of return on assets, return on equity and USD exchange rate was analyzed within the framework of the regression model. According to the findings, there is no relationship between the amount of derivatives realized by banks and asset size, GDP, CPI, interest rate, loans, liquidity rate, deposits, net interest margin, non-performing loans and USD rate, on the other hand, special provisions, capital, return on assets and own equity. It has been observed that there is a negative relationship between the rate of return on capital.