Bank Lending in Turkey: Effects of Monetary and Fiscal Policies
AbstractThe period following the 2000-01 crisis was marked by a successful disinflation program sustained through inflation targeting and fiscal discipline in Turkey. This paper studies the impact of monetary and fiscal policies on credit growth during this period. Using quarterly bank-level data covering 2002-08, we find evidence that liquidity-constrained banks have sharper decline in lending during contractionary monetary policies and that crowding-out effect disappears more for banks with a retail-banking focus when fiscal policies are prudent.The results are statistically weak, suggesting that bank lending channel is not strong in Turkey and government finances has limited direct impact on credit.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 10/233.
Date of creation: 01 Oct 2010
Date of revision:
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Other versions of this item:
- Burcu Aydin & Deniz Igan, 2012. "Bank Lending in Turkey: Effects of Monetary and Fiscal Policies," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 48(5), pages 78-104, September.
- NEP-ALL-2010-10-30 (All new papers)
- NEP-ARA-2010-10-30 (MENA - Middle East & North Africa)
- NEP-CBA-2010-10-30 (Central Banking)
- NEP-CFN-2010-10-30 (Corporate Finance)
- NEP-FDG-2010-10-30 (Financial Development & Growth)
- NEP-MAC-2010-10-30 (Macroeconomics)
- NEP-MON-2010-10-30 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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