Regulators in emerging markets are increasingly curtailing the practice of foreigncurrency lending. In such a move Turkish regulatory authorities banned foreign currencylending to households in 2009. This paper examines the evolution of financial dollarization inTurkey in the 2002–2009 period...

Despite the financial sector liberalization and openness that started in the earlier 90’s and significant macroeconomic development as well as increasing inflow of capital toward the region, there is not any evidence of the reduction of interest rates as well as banks’ profits in Latin...

Dollar-denominated deposits and loans could increase financial fragility in emerging market banking systems. This currency mismatch does not only increase banks' currency risk when the proportion of dollar-denominated loans with respect to local-denominated loans increases but also it increases...

A new procedure is proposed that performs reduced rank regression (RRR) in non-Gaussian contexts based on multivariate dispersion models. Reduced-rank multivariate dispersion models (RR-MDM) generalize RRR to a very large class of distributions, which include continuous distributions like the...

A portfolio selection model which allocates a portfolio of currencies by maximizing the expected return subject to Value-at-Risk (VaR) constraint is designed and implemented. Based on an econometric implementation using intradaily data, the optimal portfolio allocation is forecasted at regular...