Review the Regulations of Financial Strength in Securities Firms in the Light of Global Crisis Lessons

Abstract

However there are minumum self discipline regulations for securities firms, crisis has showed risk management standards must go beyond the minumum. There are two important deficiencies in turkish securities firms’ regulations of financial strength. The first is securities firms are using minumum risk management standards defined by the regulations. As observation, we may also argue that small firms can’t use sophisticated technics. Secondly, regulatory capital and financial risks defined by the regulations are essentially based on basel i standards. In this study, we argue that these deficiencies would be the reasons of inherent weaknesses in the industry’s risk management framework.Investment banking, global financial crisis, securities firms, financial strength.