Recent developments in Turkish derivatives markets demonstrate the increasing importance of risk management not only for individual banks but also for the entire system. In this context, this study analyzes the counterparty credit risk of OTC derivatives. The analysis is based on a hypothetical...

Qualitative techniques are essential tools for identifying and assessing operational risk (OR). Their relevance in assessing OR can be understood due to the lack of a quantitative static model capable of capturing the dynamic operational risk profile which is shaped by managerial decisions. An...

Abstract One of the impacts of financial liberalisation/deregulation to the risk management and regulation mechanisms is self regulation. In the context of self regulation, it is expected that financial intermediaries may internally develop risk management rules, define capital level based on...

The Central Bank of Argentina (BCRA) introduced in September of 1996 a capital requirement for market risk. This requirement is calculated according to a standarized formulae set by the BCRA, based on a a Value-at-Risk (VaR) of tghe trading portfolio. This document studies the performance of the...

As observed at least in last two decades, financial engineering has not only changed the way of doing business in finance world, but also has changed daily life of average citizens in the leading economies. Structured products named as weapons of mass destruction in some post-crisis comments....

However there are minumum self discipline regulations for securities firms, crisis has showed risk management standards must go beyond the minumum. There are two important deficiencies in turkish securities firms’ regulations of financial strength. The first is securities firms are using...

The idea of development of capital markets and hence securities firms had resurfaced after 1980’s in Turkey, the latest and probably the final liberal period of Turkish economy. First regulations on securities firm business appaeard after Banking Crisis of 1982 (or Banker Crisis). The number...

Ponzi finance is a type of financial fraud based on the principle of continuous fund rasing arising from the newcomers to the system. Ponzi scheme is inherently but necessarily tend to financial failure/bankruptcy. In Turkey, there were at least three well known ponzi schemes after 1980’s....

This paper presents a comprehensive review on the activity of credit cooperatives in those countries where this sector has a long tradition and reached an important development. It describes the historical evolution in each country with special focus on the regulatory issues. The main...

During last years there has been an increasing interest about the study of microfinance phenomena as long as the activity has been developing in several countries. There has been an important literature body regarding the different topics related to this theme. This paper focuses on the analysis...