In this study we try to find that whether markets take into account the phenomenon of Too Big to Fail. With the help of CDS market data, which reflects the risk, markets attribute on banks, we calculate the default probabilities of banks in one, two, and three years. Then we regress these...

We test for sustainability of Turkey’s current account position between 1987 and 2009 using the intertemporal solvency model of Craig S. Hakkio and Mark Rush (1991) and Steven Husted (1992). According to this approach, the intertemporal budget constraint is satisfied if there is cointegration...

In this study we try to find that whether markets take into account the phenomenon of Too Big to Fail. With the help of CDS market data, which reflects the risk, markets attribute on banks, we calculate the default probabilities of banks in one, two, and three years. Then we regress these...

Despite its widespread use globally, majority of the Turkish financial institutions are still unaware of Credit Default Swaps (CDS), stemming mainly from insufficient financial infrastructure and information base for credit derivatives. This study analyzes Turkish CDS from various perspectives....

Systemic risk and fragility became more important especially after the crisis of 2008. However, the burgeoning literature especially focuses on interbank and bank-firm credit networks. On the other hand, in developing countries, deferred check payments also compose another kind of credit...