The Importance of the Banking Sector for the Development of Foreign Trade: The Case of Turkey

Foreign trade transactions face geographical distance between exporter and importer, as well as some problems arising from a lack of confidence in trade and different laws and regulations from one country to another. Banks and bank guarantees in the banking system play an extremely important role in solving such problems. It is possible to say that the banking sector has an important share in the increase in international commercial activities over time. The banking sector plays an extremely important role, especially in ensuring a regularity in payments related to commercial activities and creating an environment of trust regarding payments between exporter and importer parties. In this study, Various analyzes were made using econometric methods using the data obtained from the TCMB and TUIK and Within the framework of these analyzes, it is aimed to reveal the effects of loans on foreign trade and the effects of developments in foreign trade on loans. As a result of the analyzes made in this study, from exports to total loans, at the 5% significance level; From imports to total loans, a 10% significance level of causality has been determined. A causality could not be determined from total loans to exports and imports. Therefore, it is seen that an increase in foreign trade volume affects total loans. Regression analysis was carried out to determine the direction in which foreign trade affects total loans. According to the regression analysis, the increase in exports reduces total loans. Thanks to exports, money is inflow into the country, which leads to a decrease in total credit demand. In the regression analysis, it is seen that an increase in imports increases total loans. However, since the coefficient is insignificant, it is possible to say that there is no significant relationship between the two variables.