To the Problem of Financial Safety Estimation: the Index of Financial Safety of Turkey

Matkovskyy, Roman (2013): To the Problem of Financial Safety Estimation: the Index of Financial Safety of Turkey.

Abstract

This paper proposes an approach to explore the strength of the financial system of Turkey against the possibility of financial disturbances appearing based on the construction of the Index of Financial Safety (IFS) of a country. For this purpose the macro-prudential approach, system analyses, the basic principles of the theory of logical inference, principal of parsimony, principal component analysis are used. The results showed that the IFS applied to Turkey is able to capture the main perturbations in its financial system.

• Item Type: MPRA Paper
• Language: English
• Keywords: Financial safety, index of financial safety (IFS), financial risks
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C38 - Classification Methods ; Cluster Analysis ; Principal Components ; Factor Models; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E50 - General; G - Financial Economics > G0 - General > G01 - Financial Crises; G - Financial Economics > G1 - General Financial Markets > G17 - Financial Forecasting and Simulation

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