International Journal of Research in Social Sciences, vol.6, no.12, pp.499-507, 2016 (Refereed Journals of Other Institutions)
This study aims to determine the factors that affect the decisions of the banks related to foreign
exchange positions. Within this context, annual data of 4 participation banks (Albaraka Türk,
Bank Asya, Kuveyt Türk, Türkiye Finans) of Turkey for the periods between 2005 and 2015 was
analyzed in this study. Additionally, panel logit model was used in order to reach the conclusion.
As a result of the analysis, it was identified that participation banks prefer to have long position
when they are more profitable. Moreover, it was also defined that in case of increase in
international reserves of the country and higher stock exchange index, short position is preferred
by these participation banks. While considering these issues, it was understood that participation
banks opt for having more FX assets than FX liabilities when there is economic stability.