One of the impacts of financial liberalization/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 economic...

Global financial crisis has intensively affected U.S. economy and global financial system. There are still many problems remain unsolved after the first shock of crisis such as effectiveness of policy measures, concerns on public interventions etc. This paper analyzes the relationship between...

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...

Financial failures observed during global financial crisis have again underlined the importance of effective risk management. In this article, the author analyzes the best instrument, namely self discipline, official discipline and market discipline, for the effective risk management. In the...

As observed in at least the last two decades, financial engineering has not only changed the way in which business is conducted in the finance world, but also the daily life of the average citizen in the leading economies. Structured products have been deemed weapons of mass destruction in some...

Official discipline, market discipline and self discipline are the disciplinary mechanisms and aim to direct firm-wide risk management. As the center of this mechanism self discipline is the principal control point combining accounting and reporting system, internal control, internal audit, risk...

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 appeared after Banking Crisis of 1982 (or Banker Crisis). The number of...

The importance of market discipline has been rapidly growing at both the regulatory and market levels in recent decades. However, firm/system-wide financial failures during the global financial crisis supported the idea of more regulation. The result has been in the author's view, excessive or...

As an instrument for managing/optimizing firm/industry wide risks, risk management is useful tool for companies and regulators. Companies and agencies use various risk management instruments to fulfill their responsibilities to stakeholders, and eventually society. In this respect, Kane suggests...