Browsing by Subject "Interbank markets"
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Item Open Access Do banking groups shape the network structure? Evidence from Turkish interbank market(Elsevier, 2019) Sümer, Tuba Pelin; Özyıldırım, SüheylaUsing a unique exposure data on Turkish banking system (disaggregated according to bank ownership structure and instrument level), we study the effects of ownership structure on the interbank network structure. During the sample period of 2003–2017, we observe that foreign and state deposit banks are the dominant institutions shaping the structure of the network under different contracts. Foreign banks, in particular, have a higher coreness vector in derivative exposures through their comparative advantage in offsetting derivative transactions. Moreover, our findings suggest that when foreign investors acquire domestic banks, the network structures of the acquired bank change considerably. We also present evidence that local and Basel III regulations play a significant role in the formation of the network structure through liquidity channel. We found highly liquid large banks and well-capitalized non-large banks have become more centralized in the interbank security market. The central bank's efforts to restore liquidity in the money markets during and after the global financial crisis seem to have increased the central role of foreign deposit banks in the overnight lending market against state and large private deposit banks.Item Open Access Systemic risk and financial networks(Bilkent University, 2019-12) Sümer, Tuba PelinThis thesis investigates the interbank relations of Turkish banks with each other and foreign banks abroad. In the first chapter, we focus on the interbank relations between domestic banks and study the effects of bank ownership structure on the in terbank network structure. During the sample period of 2003-2017, we observe that foreign and state-owned banks play dominant role in shaping the network structure. Foreign banks, in particular, have a higher coreness vector in derivative exposures through their comparative advantage in offsetting derivative transactions. More over, our findings indicate that when a foreign investor acquires a domestic bank, the network structure of the acquired bank changes considerably. We also present evidence that local and Basel III regulations play a significant role in the formation of the network structure through liquidity channel. In the second chapter, we focus on the interbank relations between banks in Turkey and foreign banks abroad for 2014-2018 period. Funding from foreign banks in repo, deposit and loan type is an important financing channel for domestic banks. For hedging currency risk, domestic banks are also making derivative transactions with foreign counterparties. We docu ment several network statistics and analyze the similarities of bank rankings in these statistics. Moreover, we examine the similarities between different instrument-level networks as repo, loan, deposit and derivatives. By differentiating foreign banks as the banks having shares in domestic banks and others and the banks that work ac cording to islamic principles and others, we investigate the evolvement of interbank relations between these groups.