Abstract
This study examines the volatility connectedness among banks, industrials, and services subindices of Borsa Istanbul using the Diebold-Yılmaz connectedness index methodology. The findings indicate that the banks index typically acts as a net receiver of connectedness from industrials and services indices. If the banks index is considered a proxy for the financial side of the Turkish economy while the other two represent the real side, this result aligns with earlier observations on the connectedness between the real and financial sides of economies. Specifically, it suggests that when a proxy for the real side incorporates financial variables, the real side tends to be a net source of connectedness most of the time. As shock propagators, industrials play a dominant role, and the banks index often moves in the opposite direction to the other two sectors.
 Key Words: Real and Financial Sectors, Financial Connectedness, Volatility, Borsa Istanbul.
 JEL Classification: C32, E44, G10.
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