Journal of Financial Economics and Banking

Comparative Analysis of Türkiye and BRICS Countries’ Banking Sectors in Terms of Macroeconomic Factors Determining Risk Taking

2023-01-31T19:18:25+00:00

The macroeconomic determinants of banking sector risk taking channel in Turkiye and BRICS (BRICS-T) countries are analyzed, and the impacts of risk taking in response to the possible shocks are examined with the reasons in these countries comparatively for 2002–2020 which generally covers expansionary period for the global economy. For the risk taking channel, non-performing loan (NPL) is accepted as the dependent variable; policy interest rates, unemployment, inflation rates and real GDP are selected as macroeconomic independent variables in the analysis to detect short and long term relationships between the variables by using panel autoregressive distributed lag model (PARDL). The results of the analysis reveal that while the macroeconomic variables are significant on risk taking in the long run, they differ according to the countries in the short run.

Connectedness Analysis of Volatility Transmission: Evidence from Turkey

2023-02-08T18:29:52+00:00

The study is conducted to accomplish the objective of connectedness among Turkey's exchange rate, interest rate, inflation, and stock returns. The results explore the highest value of the Total Connectedness Index (TCI), which coincides with the currency crisis and with COVID-19. The results of the dynamic from the total directional connectedness reveal that TCI has greater connectedness with the interest rate and exchange rate. Similarly, the TCI has a strong connection with the stock market and inflation during 2021-2022. The results of the dynamic to TCI show that all the indicators have contributed to the TCI during the crisis. The dynamic net total directional connectedness results explore that the interest rate, exchange rate, inflation and stock returns have both transmitter and net receiver roles. The transmitting role of exchange rates to inflation confirms the high dependency on imported inputs reflected in inflation. The stability of prices and other variables appears to be determined by the appropriate interest rate policy and the stabilization of interest rates.

Option Contracts from Derivative Instruments and their Accounting

2023-03-26T22:02:01+00:00

Derivative products are products whose price is tied to another underlying asset. Derivative products are regulated on assets such as interest rates, shares, and financial assets such as foreign currency, and commodities. These contracts are traded on organized exchanges and over-the-counter markets. There are four basic derivatives. These are swap contracts, forward (alivre), futures contracts, and options contracts. Derivative products traded in over-the-counter markets; Forward (live) contracts, options contracts, and swap contracts. Derivative products traded in organized markets; Futures contracts are options contracts. In this study, options contracts and their accounting according to the Türkiye uniform chart of accounts will be discussed.

A Literature Review on the Digital Transformation in the Banking Sector

2023-03-20T12:28:39+00:00

In recent years, digital transformation, which is very important for the development, survival and competitiveness of organizations, has received considerable attention in all sectors. The banking sector is one of the most affected by digital transformation. Banks need to constantly renew themselves and meet the demands of consumers, as well as follow new technologies. This article proposes identifying gaps in the literature and a future research agenda in the field of digital transformation in the banking sector. For this purpose, the studies in the field of digital transformation in the banking sector were examined by using the systematic literature review method. We have selected 24 articles related to the field of digital transformation in the banking industry. The identified articles were categorized into four main factors of research: (i) Organizational culture, (ii) Digital technology, (iii) Digital banking transformation methods, (iv) Banking services. At the end of the study, it is seen that there is still insufficient research in the field of digital transformation in the banking sector and there is a great need for further studies in this field.