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Dynamics of non-performing loans in the Turkish banking sector by an ownership breakdown: The impact of the global crisis

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  • Us, Vuslat

Abstract

This paper explores the impact of the global crisis on the dynamics of non-performing loans in the Turkish banking sector by ownership. Estimation results suggest that the crisis affected these dynamics differently across banks, which implies that policy implications are uneven. This has important consequences regarding the effectiveness of monetary and the macroprudential policy, which prompt policymakers to consider ownership in policy design. To enhance policy effectiveness, adding ownership-specific explanatory variables may enable better representation of the non-performing loan dynamics. A vintage loan analysis may also help by allowing policymakers to directly identify the loan type, which generates non-performing loans.

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  • Us, Vuslat, 2017. "Dynamics of non-performing loans in the Turkish banking sector by an ownership breakdown: The impact of the global crisis," Finance Research Letters, Elsevier, vol. 20(C), pages 109-117.
  • Handle: RePEc:eee:finlet:v:20:y:2017:i:c:p:109-117
    DOI: 10.1016/j.frl.2016.09.016
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    Cited by:

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    2. Feng-Wen Chen & Yuan Feng & Wei Wang, 2018. "Impacts of Financial Inclusion on Non-Performing Loans of Commercial Banks: Evidence from China," Sustainability, MDPI, vol. 10(9), pages 1-28, August.
    3. Farrukh Shahzad & Zeeshan Fareed & Bushra Zulfiqar & Umme Habiba & Muhammad Ikram, 2019. "Does abnormal lending behavior increase bank riskiness? Evidence from Turkey," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-15, December.
    4. Florian Manz, 2019. "Determinants of non-performing loans: What do we know? A systematic review and avenues for future research," Management Review Quarterly, Springer, vol. 69(4), pages 351-389, November.

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    More about this item

    Keywords

    Global crisis; Non-performing loans; Turkish banking sector; Ownership; Macroprudential policy;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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