Abstract

Foreign capital banks operating in a country have positive and negative aspects to the country's financial system and banking activities. One of the negativities is that banks with foreign capital are not prepared for certain risks and crises; and they tend to leave the country in the face of social and political problems in the country. The aim of this study is to analyze the sensitivity of foreign banks to market risk and to test whether these attitudes of foreign banks have changed despite the impositions of globalization. In line with this determined purpose, it is investigated by cluster analysis whether public, private and foreign capital deposit banks operating in Turkey differ from each other in terms of market risk sensitivity ratios. In other words, their risk groups are investigated by cluster analysis.
 
 Results of the analysis, for the period 2018-2020 which includes the pandemic crisis have emphasized that the banks with foreign capital did not differ significantly from other deposit banks. On the contrary, there exist similarities with other banks. This shows that the banking sector has adapted to the globalization phenomenon and does not perform much differently than local banks in terms of sensitivity to market risks.

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