Terms & Definitions

It is the set of principles that explains how economic agents acting in their own interest behave in competition or cooperation with each other.

It is the rate at which delta changes with respect to the underlying price (Γ = N′(d1)/(S·σ·√T)); it shows how frequently the hedge needs to be renewed.

Or nominal GDP, the national income method that measures the value of goods and services produced in a given period at the prices of the same period.

It is a price index based on the basket of goods covering all goods and services included in GDP.

Or real GDP, the national income method that measures the value of goods and services produced in a given period at the prices of a fixed base year.

; It is the budget of public institutions such as the Turkish Grand National Assembly, Presidency, Prime Ministry, Constitutional Court, Court of Cassation, Council of State, Court of Accounts, and various ministries that constitute the legal personality of the state.

It consists of the balances of the central government budget, local administrations, social security institutions, general health insurance, funds, revolving funds and the unemployment insurance fund. This definition is used in international comparisons.

Within the Investment Incentive System, the incentives that investments not falling within the scope of regional, priority or large-scale investments can benefit from, on the condition of meeting the minimum investment amount. Natural Person: the term legally defining the period of a person from the womb until death, on the conditions of being born alive and remaining alive.

Or abbreviated as P, the conceptual quantity expressing the prices of all goods and services in the economy in aggregate.

Such arrangements are defined as tacit collusion shaped by the level of commitment the participating parties feel, and are examined under the "agreement, concerted action and/or decisions" framework in Article 4 of the Competition Law.

These are signs indicating a product that is identified with a region, area, locality or country of origin by its distinctive qualities, reputation or other characteristics.

It is a necessity good for which the quantity demanded increases, rather than decreases, as its price rises.

Or abbreviated as G, the statistical measure showing to what extent the numbers in a group differ from one another and generally used to calculate inequality.

; is the economic, political and cultural rapprochement of countries and societies.

It is the central bank's own determination of its monetary policy objectives.

It is the heading in the balance of payments that shows foreign trade income and expenditure.

They are products obtained from a common source that can be used a limited number of times.

It is each of the multiple products obtained as output at the end of the same production process.

Or abbreviated as G, the main expenditure heading covering the purchases of goods and services made domestically by the state in order to deliver its services.

These are debt securities issued in the domestic market by the T.C. Ministry of Finance.

Or abbreviated as DİBS, the bonds and notes issued on the domestic market by the Ministry of Treasury and Finance.

It is the total of the state's consumption and investment expenditures.

; the idea that the state is also composed of people and that these individuals, whether politicians or bureaucrats, may act in their own personal interests.

It is the coefficient showing how much impact a unit change in government expenditure will have on equilibrium income.

It is the period of a severe economic crisis that began in the United States in 1929 and affected the whole world until the end of the 1930s.

It is a national income accounting method proposed by the People's Republic of China in 2006 that also takes into account the environmental impacts of economic production.

It is a type of direct foreign investment that includes the physical investments that foreigners set up or build from scratch in the country.

It is a national income and welfare measure put forward by the King of Bhutan, Jigme Singye Wangchuck, in 1972.

Or abbreviated as GDP (GSYH), the market value of all final goods and services produced using the resources of a country in a given period.

It is the value added produced within the borders of a country in a period.

Or abbreviated as GFCF (GSSSO), the total of all fixed capital expenditure made by resident economic units domestically.

Or abbreviated as I, the main expenditure heading covering the fixed capital and stock purchases of domestic economic units.

Or abbreviated as GNP (GSMH), the market value of all final goods and services produced using resources belonging to the nationals of a country in a given period.

It is gross profit (revenue − cost of goods sold) as a percentage of revenue; it measures cost discipline in production.

Or abbreviated as GVA (GSKD), the total value added created in the economy or in a given sector of the economy in a period.

They are cooperatives obliged to guarantee to the bank against loans so that small businesses, tradespeople and artisans can obtain credit from a financial institution. A guarantor is the person who undertakes to pay the debt on behalf of another when that person does not pay it.

The core sales of undertakings refer to the sales they can make without feeling the competitive pressure of their rivals, as a result of factors such as brand image, product/service quality, accessibility and after-sales service quality. An undertaking having core sales means that a certain (inelastic) part of total demand in the market depends on that undertaking. Undertakings with market power are generally accepted to have core sales

It is the type of support granted to special-purpose model projects whose subject and conditions are determined under the guidance and direction of the relevant Development Agency, in line with the priorities foreseen in the regional plan, with a view to providing direct support without applying the call-for-proposals method.

It is a concentration transaction carried out without notification or permission, including agreements, information exchange and unlawful coordination that restrict competition between the parties beforehand.

The securing of the investor's investment against possible adverse price movements, by using the instruments in the financial markets effectively and correctly, with the aim of protection against investment risk. With the aim of reducing the risks that may be encountered to a certain value, the investor can, by taking a long position with the help of futures contracts, purchase a futures contract with the expectation that prices will rise in the future, or, by taking a short position, sell a futures contract with the expectation that prices will fall in the future.

Example: The company applied hedge accounting to its interest rate swaps.(The company applied hedge accounting to its interest rate swaps.)

İngilizce tanım: Designating a derivative to offset changes in fair value or cash flows.

It is not acting on one's own judgement but following the direction of the crowd; it feeds the inflation and collapse of bubbles in panic.

Or abbreviated as HHI, the measure of market concentration calculated by summing the squared market share percentages of all the firms in a market.

It is an oligopoly market in which a differentiated product is bought and sold.

Outcomes, Immediate Outcomes. High Level Effectiveness: the high effectiveness degree showing, in the assessment made of the country's anti-money laundering and counter-terrorist financing system, that the short-term outcomes were largely achieved but that minor corrections are needed. High Level Mission: the 'high level visit' stage in the enhanced follow-up process applied by the FATF Plenary following the FATF country assessment, on account of the presence of certain factors relating to the country.

It is the tendency to think 'it was obvious' after an event has occurred; it assesses forecast accuracy too highly.

The Service Sector Competitiveness Enhancement Project Support, the support type provided by the Ministry of Trade within the scope of supporting foreign-currency-earning services trade. IPA: the Instrument for Pre-Accession Financial Assistance, the financial and technical assistance instrument designed by the European Commission to support reforms in EU candidate countries. IPARD: the rural development component of the Instrument for Pre-Accession Assistance established by the European Union (EU) to support candidate and potential candidate countries.

It is the standard deviation calculated from a historical series of returns; it differs from implied volatility in that it is based on the past rather than on expectations.

These are products that can be supplied by different sellers but are indistinguishable to the consumer in terms of shape and quality.

Homogeneous products are spoken of in cases where the products substitute one another exactly and consumers perceive no de facto or real differences among the products offered by different undertakings. Price is the most important element for which undertakings producing homogeneous products compete. Empirical findings show that, when the number of undertakings is small, the existence of homogeneous products can facilitate tacit agreement. In various countries, in homogeneous products such as cement, flour, steel and sugar, ca

Undertakings diversifying their products according to elements such as color, design and location, trying to reach consumer groups with different styles and tastes. For example, within the same media group, different newspapers appealing to different preferences in society, such as a tabloid, an opinion newspaper and a mass-market newspaper, can be published.

It is the merger of two competing companies operating in the same market.

In such acquisitions, which are one way for an undertaking to gain control of another undertaking's shares, the acquiring undertaking, without the knowledge or consent of the target undertaking's managers, becomes partly or wholly owner of the said undertaking by agreeing with a portion of its shareholders or by accumulating shares from the stock exchange.

An index calculated monthly with the aim of tracking the price changes in the Turkish housing market. It covers the price data of the houses put up for sale, in order to represent the price changes across the country. To represent housing prices, the housing values in the valuation reports drawn up during the applications made to lending institutions with individual housing loan demand are used. To access the Housing Price Index

; the basic economic unit where various economic activities such as production, consumption, wealth accumulation, and wealth transfer are carried out.

; It is the accumulation related to humans such as education, skills, experience, and entrepreneurship used in production.

; A composite statistic developed by the United Nations in 1990 that measures life expectancy, education, and income levels together.

It is a situation in which, although there is no precise definition, the monthly inflation rate is 50 percent or higher.

Example: High inflation requires the restatement of financial statements.( (Hyperinflation requires the restatement of the financial statements.)

English definition: Very high and persistent inflation.

It is the interest rate that banks in the money market charge one another for their daily unsecured borrowings.

It is the strategy of matching the duration of assets and liabilities to protect against interest rate risk; it is the key tool of a bank's asset-liability management.

They are social, economic and environmental changes that arise directly or indirectly, positively or negatively, expected or unexpected, generally within 3-5 years after the completion of the project.

It is the time between the implementation of economic policy and the felt effects of that policy.

It is a market structure that does not possess all the features necessary for ideal competitive conditions.

It is the time between the recognition of an adverse situation arising in the economy and the taking of measures to remedy that situation.

They are costs that are not directly incurred during economic activity and do not involve a definite payment.

It is the monetary policy regime in which it is not clear how the central bank will use monetary policy instruments to achieve the inflation it targets.

They are taxes paid at intervals as a fixed amount irrespective of income or wealth.

It is the implied volatility backed out of the market price of the option; it is the market measure of the market's expectation of future volatility.

It is the purchase of goods by resident individuals and institutions from other countries.

It is a mathematical relationship showing how the volume of imports changes depending on various variables in an economy.

A contribution made in a project by the project owner and/or its partners in the form of land, goods, materials, labor, machinery and equipment to meet the project's specific needs. B2B: an abbreviation of Business to Business, this term refers to any commercial activity that businesses carry out directly with one another. B2C: an abbreviation of Business to Consumer, this term refers to any commercial activity that businesses carry out directly with consumers

They are non-monetary benefits provided to households by the state or employers in the form of goods and services.

It is the situation in a given period in which the aggregate demand for money in the market equals the aggregate supply of money.

It is a measure describing how and to what extent the income produced in a society is distributed equally among its different segments.

It is the change seen because purchasing power changes when the price of a product or input changes.

Or income elasticity of demand, abbreviated as ε, a basic type of elasticity showing by what percentage the quantity demanded of a product changes as a result of a one percent increase in consumers' income.

Or income elasticity, abbreviated as ε, a basic type of elasticity showing by what percentage the quantity demanded of a product changes as a result of a one percent increase in consumers' income.

It is the withholding of income tax at certain rates and for a certain period on investments holding an investment incentive certificate within the scope of the Regional Investment Incentive System, which the employer is required to pay for additional employment.

Or the Engel curve, a diagrammatic tool showing the relationship between the consumer's income and the quantity demanded of a particular good, with everything else held constant.

; the situation where not all relevant parties have all the information that could affect an economic activity, such as price, quality, quantity, or production method.

It is an industry in which firms' average total cost increases as the market grows.

Returns to scale can be defined as the effect on efficiency of the change occurring in the scale of production. Increasing returns to scale is the situation in which the undertaking's average cost falls as the quantity produced rises. There are two sources of this fall. The first is internal, stemming from the increase in the undertaking's level of production. The second is external; accordingly, the increase in the quantity of production in the industry affects the prices in the market in a way that will cause the undertaking to change its production decision

It is an increase in total product by a larger proportion when all production factors are increased by a given proportion.

They are units that provide guidance and support to help a venture survive, develop and grow in the start-up stage, which is the most difficult and most fragile period for ventures. Exchange Rate The increase or decrease in the value of the national currency against foreign currencies.

It is the adjustment of monetary amounts at certain intervals and automatically according to a price index as required by law or contract.

These are practices such as indirect price control, profit control on a product and/or producer basis, and cost-efficiency pricing, in which the price is not directly determined by the regulatory authority but the manufacturer's freedom to set prices is limited.

Or derived demand; the situation in which the demand for an object depends on the demand for the goods, services or investment instruments that are produced or acquired with that object.

They are the practices by which the state influences the market through taxes or incentives.

Or abbreviated as ED, the exchange rate showing how much foreign currency can be bought for one unit of domestic currency.

These are taxes arising from the use of goods and services that are paid by everyone at the same rate, regardless of income or wealth.

Or abbreviated as d, the quantity of the product that a single buyer in the market wants to buy at different prices in a given period.

Or abbreviated as s, the quantity of the product that a single seller in the market wants to sell at different prices in a given period.

It is the more efficient operation of related firms that use similar infrastructure and production factors by clustering in a certain geographic region.

It is the regular assembly of a greater or smaller number of parts with a common purpose [74 REKABET TERİMLERİ SÖZLÜĞÜ].

An index calculated monthly in order to measure the short-term positive or negative effects of the developments occurring in the economy and of the economic policies implemented. According to the NACE Rev.2 classification, it covers the sectors of mining and quarrying, manufacturing, and the production and distribution of electricity, gas, steam and air conditioning.

An intangible right ensuring that the inventions, innovations, new designs and original works in industry and agriculture are registered in the name of their first implementers, and that in the field of commerce the signs on the goods produced and sold, which will enable the distinction of their producer or seller, are registered in the name of their owners, and thereby that the first implementers have the right to produce and sell the product for a certain period.

Or an inelastic relationship, a response of less than one percent in the other variable as a result of a one percent increase in one variable.

It is a less than one-percent response of one variable resulting from a one-percent increase in another variable.

It is a sustained rise in the general level of prices. Inflation is measured by official indices published by TUIK showing consumer and producer price developments.

Example: Inflation reduces the purchasing power of money. ( Inflation reduces the purchasing power of money.

English definition: A general rise in the price level.

It is equal to the sum of the inflation expectation and the inflation risk premium demanded by investors in order not to be exposed to real losses.

It refers to economic agents' expectations about inflation that has not yet materialised but will occur in the future. To measure inflation expectations, indices derived from various market instruments or surveys such as the Expectations Survey published by the CBRT may be used.

These are medium-term inflation forecasts updated every three months by the TCMB within the framework of existing data, models and analyses. While the inflation target announced for a given period is fixed, the inflation forecast is regularly reviewed in the light of new information.

Bonds whose principal and interest payments are linked to a certain price index and which therefore do not suffer a real loss of value. Because the real return of these bonds does not fluctuate despite changes in inflation, offering investors a predictable net return, these bonds are preferred by risk-averse investors.

Refers to the risk premium added to the real interest rate to compensate for the loss that would occur if inflation materialized above the expected level. In other words, the nominal interest rate contains the real interest rate, inflation expectations and the inflation risk premium. This risk premium arises in countries where inflation fluctuations and uncertainties are present.

It is the annual CPI growth rate set by the TCMB and the Government for three-year periods. The inflation target is defined as the annual inflation in December of each year.

Central banks' targeting, generally together with governments, of a specific inflation figure as the aim of monetary policy. In such a practice, it is envisaged that the targeted inflation, to the extent it can affect expectations, will serve as the nominal anchor. Its difference from other policies is the clear announcement of the inflation target to the public and the taking of direct responsibility in this matter. In practice, as the implementing institution, central banks acquire instrument independence directed toward the aim; in other words, central banks can use exchange rate and interest rate policies as they wish with the aim of bringing inflation under control. Such practices can also emerge as a necessity as a result of all the magnitudes in an economy losing their nominal anchor property. For the success of such a policy, elements such as a strong and healthy fiscal structure, an observable and stable relationship between inflation and monetary policy instruments, credibility, independence, accountability and transparency are counted as prerequisites.

When money is considered a liability for the institution issuing it into circulation and an asset for the institutions and individuals demanding and holding it, inflation reduces the issuing institution's liability and the holding institution's asset in real terms. In this sense, inflation carries the property of a tax for the earner, and hence, like a tax, causes a transfer of purchasing power.

It is the point at which the slope of a curve turns from increasing to decreasing, or from decreasing to increasing.

They are the persons who are not registered with any social security institution on account of the work they do.

Innovation encompasses all the activities in creating a new product or production process, from scientific research through invention, development and commercialization. Scientific research is the new knowledge developing in the mind without a particular use being considered; invention is the application of scientific knowledge to reach a particular aim, including prototype model making; and development is the correction of the prototype so that it can be offered for consumer use, toward the final product or process.

The markets where undertakings whose futures depend on their success in creating intangible goods, and which are quite sensitive to other undertakings' successful innovations, are found are innovative markets. Innovativeness is closely related to today's information age or revolution. Being able to create new (technological) knowledge depends on defining and integrating the different, mutually complementary pieces of information that are the inputs of this process. The recombination of the pieces of information belonging to the past and to the whole, the new knowledge

Or factor cost, the cost of resources such as labour, capital and land used in the production process.

Or factor market, the markets in which the tools and materials needed to carry out production are bought and sold.

It is the determination of the terms of office of the central bank's senior managers and the rules for their appointment and conduct by law and away from political pressure.

; The population living under the roof of an institution or organization such as university dormitories, foster homes, nursing homes, hospitals, prisons, barracks.

; A conceptual criterion that collectively shows a country's form of government, rule of law, property rights, political stability, bureaucratic effectiveness, prevention of corruption, and accountability of rulers.

It is the process of enabling an institution, organisation or enterprise to be restructured so that it can continue and develop its activities without depending on individuals.

It is the central bank's own determination of the policy instruments it will use to achieve its objectives.

It is a service that provides financial protection against various risks.

It is the physical or virtual environment where insurance policies are bought and sold and in the course of which insurance premium rates are determined.

It is a contract that provides a certain payment guarantee when predetermined losses and damages occur.

It is the amount paid in return for an insurance policy.

The absolute-quality rights over the elements constituting the subject of intellectual property, such as literary and artistic works, patents, utility models, designs, trademarks and integrated circuit topographies. The holder of an intellectual property right obtains exclusive authorities against its rivals and, as a result, can prevent the unauthorized use of the intellectual property subject it holds. An undertaking's being a monopoly in the production and sale of a product by virtue of the intellectual property right it holds is the dominant position issue in competition law

A payment system with legal personality, established in 1990 through the partnership of 13 public and private Turkish banks to provide the clearing and settlement of debit and credit cards. Through BKM, banks carry out the clearing and settlement of the credit card and debit card payments they make on one another's behalf. BKM operates on a netting basis, and the settlement of the debts arising from netting takes place through the accounts held at the Istanbul Branch of the CBRT.

Or abbreviated as IBOR, the interest rate at which banks lend to one another for their unsecured overnight borrowings in the money market.

It is the market in which banks, operating under the TCMB, may carry out TL deposit buying and selling transactions with one another and with the TCMB, and may access the Late Liquidity Window Facility and intraday limit transactions solely in their capacity as the TCMB.

As a component of the EFT System owned and operated by the CBRT, the system that provides the real-time electronic settlement of the payments banks make among themselves and of the banking payments related to the correspondent services they provide to financial institutions abroad.

It is the situation in which the behaviour of each of several economic units influences the behaviour of the others.

It is a fixed amount paid for the use of capital belonging to someone else.

Example: Interest expense is accounted for using the effective interest method.( Interest expense shall be recognised using the effective interest method.)

English definition: The cost of using borrowed money.

It is the ratio of the interest payable to the amount borrowed.

It is the risk that an unexpected change in the interest rate adversely affects the value of debts and receivables.

It is financial support envisaging that the whole of the interest or profit-share expenses to be paid on credits from relevant intermediary institutions is covered by the relevant public bodies and institutions.

These are joint-stock companies that are authorised to act as intermediaries by the Capital Markets Board.

Example: An investment entity does not consolidate its controlled investees but measures them at fair value.(An investment entity does not consolidate its controlled investees but measures them at fair value.)

İngilizce tanım: An entity that obtains funds from investors to provide them with investment management services and measures its investments at fair value through profit or loss.

They are the products that are used up in the production process or that become part of the final good.

It is a target that can directly influence the main target of monetary policy and that is clearer and more measurable than the main target.

It is the discount rate that makes the NPV zero; the project is expected to pass the cost of capital. When the IRR and the NPV conflict, the NPV is taken as the basis.

It is the discount rate that equates the net present value of an investment project to zero, in other words the present value of cash inflows with the present value of cash outflows.

They are methods that enable economic agents to take social costs and benefits into account when making choices.

The international investment position is the statistic showing, at a certain date, the stock value of the financial receivables of the resident persons in an economy from non-resident persons, of their financial assets in the form of gold held as reserve assets, and of the residents' financial liabilities to non-resident persons.

The TL borrowing facility provided by the CBRT to banks, in order to meet the urgent TL funding needs arising during the day in the banking system and to eliminate the blockages that may occur in the payment system, during the day (between 09:00 and 15:00) to be repaid by the end of the day (until the EFT closes) — within its limits and collateral, in return for a commission (interest-free).

They are rights such as the rights of the undertakings under investigation, the right to be informed, the right to protection of trade secrets, the right to a reasoned decision, the right to bring an action and the right of defence.

They are investments made in the medium-low technology group, such as coke and refined petroleum products manufacturing, plastic products manufacturing, glass manufacturing and fabricated metal products manufacturing, as determined by the OECD's technology intensity definition.

Example: The company made a long-term investment in a subsidiary.( The company made a long-term investment in a subsidiary.)

İngilizce tanım: An asset held to increase wealth through income or appreciation.

They are the livestock investments that also include investments in breeding, dairy products, meat products, slaughterhouses, cold storage and feed units.

In the broadest expression, the giving of written or oral opinions and advice in the works to be carried out for the investors on any investment instrument. Through investment consultancy, the investor receives consultancy services from the expert/authorized/designated institutions and organizations for the information, orientation, opinion-taking and planning activities it needs at every stage of the investment it has planned.

It is the part of the investments that will be covered by the state through tax revenue forgone by applying an investment allowance.

It is credit obtained from external sources in order to meet companies' investment needs and to support the projects they plan to develop.

A graphical tool showing the relationship between the interest rate and planned investment expenditure, other things being equal.

It is the transfer of a venture by an entrepreneur or investor after achieving an investment or return of a desired size.

It is a programme introduced by Decision No. 2012/3305 on Amending the Decision on State Aid in Investments, offering incentives to investors.

These are capital market institutions established as joint-stock companies in accordance with the registered capital principle in order to operate a portfolio of gold and other precious metals traded through capital market instruments on national and international exchanges or on organised markets outside the exchange.

Example: An investment partnership provides its members with membership rights.( A mutual entity provides its members with membership rights.)

İngilizce tanım: An entity whose owners receive dividends or returns rather than equity shares.

The allocation of public land, with the Investment Incentive Certificate, to the sectoral investments supported within the scope of the 'Decree Amending the Decree on State Aids in Investments No. 2012/3305'. Investment Contribution Ratio: the ratio found by dividing the investment contribution amount by the total investment made.

It is the coefficient showing how much impact a unit change in investment expenditure will have on equilibrium income.

A survey applied twice a year with the aim of capturing the current investment tendencies of the workplaces operating in the industrial sector and their investment plans for the near future, and the assessments relating to the purpose of these investments and the factors effective in the workplace managers' investment decisions. To access the Investment Survey

It is the person who puts capital into various investment instruments in order to make a profit, gain an advantage, increase capital accumulation or earn income in various periods.

Example: The investor assessed whether it had significant influence over the associate.(The investor assessed whether it had significant influence over the associate.)

İngilizce tanım: A party that holds an interest in another entity, such as through shares, and is entitled to returns from that investment.

It is the phenomenon whereby resources are used efficiently and the welfare of society increases as a result of the behaviour of the employed, who act only for their own interests.

An incentive system that grants customs exemption for the raw materials or inputs to be used in production and needing to be imported, on the condition of exporting. DASK: the Compulsory Earthquake Insurance that covers, in cash and within the limits stated in the policy, the material damage directly caused by an earthquake and the fire, explosion, tsunami and landslide resulting from it. Variable Expenses: expenses in a given accounting period that vary (increase or decrease) according to production volume. Foreign Trade: a state's foreign

It is an instrument showing the relationship between total production and the interest rate when the goods market is in equilibrium.

It is the situation in a given period in which the amount of capital demanded in the market equals the amount of capital supplied.

It is the international standard industrial classification used by the United Nations to classify economic data.

An international organization that began its activities in 2003 with the aims of establishing international regulatory standards for Islamic financial institutions in the fields of banking, securities markets and insurance so as to encourage the development of the Islamic financial services sector, providing guidance on the effective supervision of institutions offering Islamic financial products, and developing criteria for the identification, measurement, management and disclosure of risks for the Islamic financial services sector.

It is a diagrammatic tool showing the components of production factors that can be purchased with the same fixed expenditure.

A graphical tool showing the input components that yield the same total output, other things being equal.

It is the whole of several isoquant curves showing different total output levels.

It is the total of banknotes issued by the TCMB and still in circulation, including those withdrawn from circulation whose 10-year limitation period has not yet expired.

According to the TCMB definition, they are bonds and bills with a maturity of up to two years issued by banks.

They are organised industrial zones where facilities operating in the same sector group and in the sub-sectors included in that sector group are located.