IDEAS home Printed from https://ideas.repec.org/a/iif/iifjrn/v28y2013i328p33-50.html
   My bibliography  Save this article

An Empirical Analysis of the Bank Lending Channel in Turkey

Author

Listed:
  • Ekin Ayşe ÖZŞUCA

    (ODTÜ)

  • Elif AKBOSTANCI

    (ODTÜ)

Abstract

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.

Suggested Citation

  • Ekin Ayşe ÖZŞUCA & Elif AKBOSTANCI, 2013. "An Empirical Analysis of the Bank Lending Channel in Turkey," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 28(328), pages 33-50.
    • Handle: RePEc:iif:iifjrn:v:28:y:2013:i:328:p:33-50
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Monetary Policy; Transmission Mechanisms; Bank Lending Channel; Turkey; Panel Data;
    All these keywords.

    JEL classification:

    • 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
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iif:iifjrn:v:28:y:2013:i:328:p:33-50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ali Bilge (email available below). General contact details of provider: http://iif.com.tr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.