Repo and Reverse Repo Regulations in Turkey: Emergence of Regulations After 1982 Banking Crisis and Policy Suggestions in the Light of Financial Failure Lessons
AbstractRepo transactions provide cash/securities management opportunities for financial intermediaries and investors. Repos are the most important financial instrument in Istanbul Stock Exchange in terms of transaction volume. Banker Crisis (1982) and Banking Crisis (1994), occured in Turkey, and also global financial crisis have showed that repo markets are of great importance in terms of systemic risk/financial crisis management. Methodology of the study is based on literature review, data and case study analysis. In this paper, we aim to define inefficiencies of Turkish repo markets to develop policy suggestions in the light of early liberal era experience of Turkey and also financial failure lessons. In this context, we conclude three suggestions for policy makers. First, regulatory/supervisory structure of repo transactions should be cooperatively re-designed by the relevant governmental authorities. Second, acceptable repo collateral list may involve new collateral categories such as equities, eurobond, letter of guaranty and warrants. And finally, OTC repo transactions should regulate from the perspective of risk management.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Uludag University, Faculty of Economics and Administrative Sciences in its journal Business and Economics Research Journal.
Volume (Year): 3 (2012)
Issue (Month): 1 (January)
Repo and Reverse Repo; 1982 Banking Crisis; OTC Transactions; Equity Repo; Collateral Management;
Find related papers by JEL classification:
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- N24 - Economic History - - Financial Markets and Institutions - - - Europe: 1913-
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adem Anbar).
If references are entirely missing, you can add them using this form.