Abstract:

The biggest in developing countries are usually the banks and the crisis that the banking sector will experience affects the entire country’s economy, making the banking sector important. The most important users in all countries are the banks. But in some banks this use is intense, while in some it is less. Some banks use it for purchase purposes while some banks use it for speculative purposes or to protect against risk. The study has also been studied between 2010-2019 years with the ECK method where the Turkish banking sector is also influenced by the use of derivative products in terms of public, private, foreign, participating and deposit banking types and the size, profitability, liquidity, asset structure, financial difficulties and financial stability variables. The study also found that derivative products were used for risk protection and profitability purposes. In addition, the financial stability index, profitability and financial difficulty variable has been found to be effective in the use of derivative products in all types of banking, the size variable has been effective in terms of participating banks, and the liquid variable has been effective in terms of private deposit banks.

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