Derivative products and their use in Turkish banking sector

In the financial system, which grows with the developing and advancing technology day by day, the international money flow, the capital movements that have turned into a dynamic situation and the benefits it provides to the banks in the financial system have just emerged. problems and risk factors. Based on this situation, derivative instruments have emerged with the search for alternative financial instruments in order to protect both themselves and their customers from risks. In our study, the use of derivative products by banks, which is one of the most important players of the financial system, has been examined based on the increasing derivative transaction volumes of banks in our country over time. For this purpose, after the analysis of the derivative product usage structure of the Turkish Banking Sector in the 2003-2020 period, the relationship between the use of derivative products and the risks of banks is discussed with the help of RALS EKK. Currency swaps, interest rate swaps, other derivatives purchases, other derivatives purchases, other derivatives sales, market foreign exchange purchases, external foreign exchange sales transactions as dependent variables, and two of the independent variables captured by the Market Risk Amount as an independent variable. person (other derivative sales) transactions, interest swaps) and the dependent variable; It is aimed to contain a statistical relationship between other derivative purchases, currency swaps, forward foreign exchange purchases, forward foreign exchange purchases and amounts subject to market risk.