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Turkish Non-Core Bank Liabilities

Author

Listed:
  • Engin Yilmaz

    (Carlos III University of Madrid, Spain)

  • Bora Suslu

    (Mugla Sitki Kocman University, Turkey)

Abstract

Developed countries implemented a loose economic policy after the global crisis, which encouraged huge capital inflows into the emerging markets. After the global crisis, the Turkish banking system took advantage of such foreign capital inflows and experienced significant credit growth. This paper focuses on non-core liabilities, which are the sources of the credit growth in the Turkish banking system. It seems that the Turkish banking system has depended more on non-core liabilities since the beginning of 2011. Most of the non-core liabilities of the Turkish banking system are largely foreign exchange denominated and the average term structure of foreign exchange liabilities is relatively medium-term. Foreign exchange non-core liabilities of the Turkish banking system have been more sensitive to international liquidity shocks. Non-core liability growth and its medium-term foreign exchange structure are a warning signal for the Turkish banking system.

Suggested Citation

  • Engin Yilmaz & Bora Suslu, 2016. "Turkish Non-Core Bank Liabilities," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 14(1), pages 75-92.
    • Handle: RePEc:seb:journl:v:14:y:2016:i:1:p:75-92
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    File URL: http://www.asecu.gr/Seeje/issue26/issue26-yilmaz-suslu.pdf
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    References listed on IDEAS

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    Cited by:

    1. KurmaÅŸ AkdoÄŸan & Neslihan Kaya EkÅŸi & Ozan EkÅŸi, 2021. "Determinants of Non-Core Liabilities of Banks in Emerging Markets in the Post-Crisis Era," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 35(1), pages 68-86.

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    More about this item

    Keywords

    Balance Sheet; Banks; Core Liabilities; Non-Core Liabilities; Turkey;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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