Relationship between Turkish banking sector's efficiency of derivatives usage

The aim of the study is to reveal the role of derivative products in the effectiveness of the Turkish Banking Sector. To this end, the activities of public, private and foreign banks operating between the years of 2005 and 2016 were investigated and it was researched whether the use of derivative products on these activities was effective. Some control variables were also included in the model when testing whether the effect of using a derivative is an effect on efficiency. The effectiveness of the banks was tested by Data Envelopment Analysis and the effect of the use of derivative products by tobit regression analysis. According to the findings of the study, the effect of the use of derivative on the effectiveness is statistically significant and negative. While there was no statistically significant effect of the size of the assets on the activity of the banks from the control variables used in the study, the effect of the total debts and the capital adequacy ratio on the activity became positive and significant.