An Empirical Analysis of the Bank Lending Channel in Turkey

2013-07-01
Ozsuca, Ekin Ayse
Akbostancı Özkazanç, Elif
The purpose of this paper is to empirically analyze the role of the banking sector in monetary policy transmission in Turkey covering the period 1988-2009. By exploiting dynamic panel data modeling approaches, the heterogeneity in banks' lending response to changes in policy interest rates is analyzed. Given the changes in the policy stance and developments in the financial system following the 2000-01 crisis, the analysis is further conducted for the two sub-periods, 1988-2001 and 2002-2009, to examine whether there is a change in the functioning of the credit channel. Empirical evidence suggests cross-sectional heterogeneity in banks' response to monetary policy changes during 1988-2009. Regarding the results of pre-crisis and post-crisis periods, it is found that an operative bank lending channel existed in 1988-2001, however its impact became much stronger thereafter. The results also show significant differences in distributional effects of monetary policy due to bank-specific characteristics between two sub-periods.
IKTISAT ISLETME VE FINANS

Suggestions

An empirical analysis of the monetary transmission in theTurkish economy
Çavuşoğlu, A. Tarkan; Özmen, Erdal; Department of Economics (2002)
The purpose of this two-essay thesis is to empirically investigate the characteristics of the monetary transmission mechanism in the Turkish economy. The first essay is an attempt to test the presence of a bank lending channel of monetary transmission by exploiting a dynamic panel data modelling approach. The empirical investigations are focused on the bank lending behaviour of 58 deposit money banks covering the period of 1988-1999. The results of the model estimations provide no evidence of a potential fo...
An Empirical Analysis of the Risk-Taking Channel of Monetary Policy in Turkey
Ozsuca, Ekin Ayse; Akbostancı Özkazanç, Elif (2016-03-01)
This article investigates the bank-specific characteristics of risk-taking behavior of the Turkish banking sector as well as the existence of risk-taking channel of monetary policy in Turkey. Using bank-level quarterly data over the period 2002-2012 a dynamic panel model is estimated. We find evidence that low short-term interest rates reduce the risk of outstanding loans; however short-term interest rates below a theoretical benchmark increase risk-taking of banks. This result holds for macroeconomic contr...
Analysis of the monetary stance of Turkey between 2011 and 2018 with a new monetary conditions index: the roles of government bond yields and the exchange rate
Kaptan, Savaş; Gaygısız Lajunen, Esma; Department of Economics (2019)
Measuring the monetary policy stance of central banks is a much-debated issue in the literature. The changing economic dynamics over the time and different structures of economies have made impossible to use only short term interest rates, monetary aggregates or money market rates for analyzing the monetary stance. Accordingly, comprehensive monetary conditions indexes have been discovered and some central banks have started to use them as an operational target. In line with these developments, the main aim...
The Assessment of macroeconomic variability and monetary transmission mechanisms in Turkey with VAR esrimates
Baştan, Emine Meltem; Gaygısız Lajunen, Esma; Department of Economics (2012)
This thesis investigates the nature of macroeconomic changes by focussing on the monetary policy changes in Turkey between 1990Q1-2011Q4 and assesses the variability of the economy via impulse response functions obtained from VAR analyses. The period of the analyses is characterized with changes of the definitions of monetary aggregates in 2002 and 2007. In order to have consistent monetary series, the new and old series are constructed according to new and old definitions and then analyses are carried out ...
Analyzing the profit efficiency of the Turkish banking sector after the BRSA restructuring program in 2001: an empirical study using stochastic frontier approach between the years of 2002-2009
Hatunoğlu, Hande; Akbostancı Özkazanç, Elif; Department of Economics (2012)
This thesis analyzes the profit efficiency of the Turkish banking sector after the restructuring program by using Stochastic Frontier Approach. 28 banks are included in the analysis and the data belongs to the period 2002-2009. Profit efficiency scores of 28 banks are estimated by SFA. When the efficiency scores are analyzed according to the ownership status, profit efficiency scores of the state owned banks are found higher than other bank groups. Moreover, according to the asset size, large scale banks’ p...
Citation Formats
E. A. Ozsuca and E. Akbostancı Özkazanç, “An Empirical Analysis of the Bank Lending Channel in Turkey,” IKTISAT ISLETME VE FINANS, pp. 33–50, 2013, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/45861.