Financial Derivatives and Bank Risk: Evidence from D-8 Countries

Year 2021, Volume: 13 Issue: 25, 551 - 561, 28.11.2021

Zekeriya Gül Şükriye Gül Reis

https://doi.org/10.20990/kilisiibfakademik.985464

Abstract

Purpose: The study aims to investigate the impact of financial derivatives use on bank risk. For this purpose, the banks operating in D-8 countries, are investigated.
Design/Methodology: While the relationship between the bank risk and derivative utilize is examined, some of the bank-specific control variables are added to the model. Due to the sample structure and endogeneity problem in the study, hypotheses were tested again by using Generalized Moments Method.
Findings: The analysis results showed a statistically significant and negative relationship between financial derivative use and bank risk and using financial derivatives is reduced the bank's risk.
Limitations: From D-8 countries, Iran and Bangladesh were excluded from the study because of the inaccessibility of the data related to the financial derivatives.
Originality/Value: While the relationship between "Banking Risk and Use of Derivative Financial Instruments" in the literature is mainly tested in developed countries, there is a gap in the literature on how this relationship is in developing countries. This study aims to contribute to the literature by revealing the relationship between the use of financial derivatives and bank risk in D-8 countries, which are classified as developing countries.

Keywords

Financial Derivatives, Bank Risk, D-8 Countries, Z-Score, Emerging Countries

Finansal Türevler ve Banka Riski: D-8 Ülkeleri Örneği

Abstract

Amaç: Bu çalışmanın amacı, finansal türev kullanımının banka riski üzerindeki etkisini araştırmaktır. Bu amaçla D-8 ülkelerinde faaliyet gösteren bankalar incelenmiştir.
Tasarım/Yöntem: Banka riski ile türev kullanımı arasındaki ilişki incelenirken bankaya özgü bazı kontrol değişkenler modele eklenmiştir. Çalışmada örneklem yapısı ve içsellik probleminin önüne geçmek için, Genelleştirilmiş Momentler Yöntemi kullanılarak hipotezler yeniden test edilmiştir.
Bulgular: Analizlerin sonucu; finansal türev araçlarının kullanımı ile bankacılık riski arasında negatif ve istatistiksel olarak anlamlı bir ilişki olduğunu ve finansal türev kullanımının bankaların riskini azalttığını göstermektedir.
Sınırlılıklar: D-8 ülkelerinden İran ve Bangladeş’in finansal türev ürünlerine ilişkin verilerine erişilememesi nedeniyle İran ve Bangladeş örneklem dışında bırakılmıştır.
Özgünlük/Değer: Literatürde "Bankacılık Riski ile Türev Finansal Araçların Kullanımı" arasındaki ilişki ağırlıklı olarak gelişmiş ülkelerde test edilirken gelişmekte olan ülkelerde bu ilişkinin nasıl olduğu konusunda literatürde boşluk bulunmaktadır. Bu çalışmanın, gelişmekte olan ülkeler olarak sınıflandırılan D-8 ülkelerinde finansal türev kullanımı ile banka riski arasındaki ilişkiyi ortaya koyarak literatüre katkı sağlaması amaçlanmaktadır.

Keywords

Finansal Türevler, Banka Riski, D-8 Ülkeleri, Z-Skoru, Gelişmekte Olan Ülkeler

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