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Monetary Policy And Bank Lending Chanel in Turkey

Author

Listed:
  • Zafer Adali

    (Research Assistant, Department of Economics, Artvin Coruh University, Artvin, Turkey)

  • Bilgin Bari

    (Asst. Prof. Department of Economics, Anadolu University, Eskisehir, Turkey)

Abstract

The main purpose of this study is to evaluate whether the bank lending channel exist or not. Within this context, quarterly data of for the periods between 2002q1 and 2016q4 was taken into the consideration. Additionally, VAR model was used to reach the objective. According to the result of impulse response function, it was reached that producer price index, real exchange rate and policy rate are effective determinants. Additionally, banks balance sheet has important and positive influence on total credits but industrial production index is regarded as partially effective. While considering this result, it was also found that both bank balance and macroeconomic variables used in this study is the main determinants of bank total credit.

Suggested Citation

  • Zafer Adali & Bilgin Bari, 2017. "Monetary Policy And Bank Lending Chanel in Turkey," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 6(2), pages 24-36, April.
    • Handle: RePEc:rbs:ijfbss:v:6:y:2017:i:2:p:24-36
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    References listed on IDEAS

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