MANAGEMENT OF BANK RISKS IN FINANCIAL MARKETS AND ITS DEVELOPMENT

Since the crises experienced in the financial markets in recent years have brought the view to the fore that the financial sectors of developed and developing countries should be structured in a healthy way. The main elements of the new approach are creating a stable operating environment, developing financial markets, ensuring transparency, strengthening the national and international financial sector, and making joint efforts to prevent international financial crises. Within the scope of strengthening the national financial system, restructuring of banks, which traditionally constitute the most important institutions of the financial system in developing countries, has gained importance. Risk management is of great importance for banks, which are the heart of financial markets. In order to increase their profitability, banks need to produce effective risk management systems that can meet the ever-increasing and changing demands of the market by constantly associating the capital-return-risk trio with each other. The purpose of risk management is to measure in advance the magnitude of losses that the markets may face in extraordinary situations while they are enduring their activities in order to be prepared for the extraordinary situations. In this article, the purpose and importance of risk management in bank risks are defined and the measurement and management techniques of these risks are assessed. As such, after defining the concept of risks, the risks arising from the banking sector and the management methods of these risks are emphasize