Analyzing Foreign Exchange (FX) Positions of Participation Banks in Turkey

Yüksel S., Canöz İ., Özsarı M.

International Journal of Research in Social Sciences, vol.6, no.12, pp.499-507, 2016 (Peer-Reviewed Journal)

  • Publication Type: Article / Article
  • Volume: 6 Issue: 12
  • Publication Date: 2016
  • Journal Name: International Journal of Research in Social Sciences
  • Journal Indexes: EBSCO Education Source
  • Page Numbers: pp.499-507

Abstract

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.