Turkish banking sector and derivative product use

This study is basically a study on how companies and banks should handle financial risks due to the developments in the financial sector and the change in the risk perception of financial instrument users. The reason for the emergence of financial risks is the transition to the free exchange system after the International Monetary Agreement signed at the United Nations Monetary and Finance Conference in 1944 was completely terminated in 1977. This study is a study about how risk perception should be prepared on the basis of companies and banks, together with the changing process in financial markets, and hedging accounting that companies and banks began to apply so as to eliminate the fluctuations caused by the use of derivative products in their financial statements. This thesis aims to make suggestions to companies and banks to deal with their risks by explaining the usage purposes and accounting of derivative products used for companies to manage their increasing risks. For this purpose, first of all, the conceptual framework of the elements such as risk and financial risk, the risk types and the methods used in financial risk management are mentioned. In the following parts, by referring to its historical development, financial instruments and the use of derivatives are examined theoretically within the scope of Turkish financial reporting standards, that are used as a hedging tool from the conceptual framework of hedging, and an examination of derivative uses has been made by examining the balance sheets and off-balance sheet accounts of banks. It is aimed to guide banks and derivative product users by examining this process in detail. Keywords: Financial Derivatives, Hedge Accounting, By Product Usage