Credit Risk Market and the Recent Loan Profile in the Turkish Banking Sector

Very little research has been done on the financial stability implications of credit risk transfer markets. In particular there is a paucity of work considering the interactions between the various credit risk transfer markets or instruments. Regarding credit derivatives, the small number of existing studies can be explained by a lack of quantitative data and by the brief history of the market" (Kiff et al., 2002, page 2). This paper tries to explain the development of credit risk transfer instruments and how they can contribute to financial stability in an emerging economy. In order to do that, it reviews the history and the recent developments in Turkish banking system and describes the credit risk environment through using quantitative data. The credit risk environment of Turkey discussed in the paper suggests that a well functioning credit derivatives market will lay the foundation for a diversified financial system that will underpin healthy recovery. © EuroJournals Publishing, Inc. 2009.
International Research Journal of Finance and Economics Issue


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Citation Formats
Ö. Özdemir, “Credit Risk Market and the Recent Loan Profile in the Turkish Banking Sector,” International Research Journal of Finance and Economics Issue, pp. 196–211, 2009, Accessed: 00, 2021. [Online]. Available: