Investigation of the effect of the policy rate of the Central Bank of the Republic of Turkey on the value of the banking index traded in Borsa Istanbul

The aim of this thesis is to examine the effect of the policy interest rate of the Central Banks of the Repuclic of Turkey on the value of the banking index traded in Borsa İstanbul. In this context, time series analysis is used in the study. The study covers monthly data for the period 2011-2023 for Turkey. A single model is used in the study and the dependent variable is the banking index, the policy rate is used as the independent variable and the Exchange rate is used as the control variable. Johansen Cointegration Test is used to determine the relationship between the variables and Dynamic Ordinary Squares (DOLS) test is used for the long-run analysis of the cointegration relationship. According to the empirical results of the study, there is a significant and negative long-run relationship between the policy rate and exchange rate on the banking index value.