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Impact of Bank Credits on Economic Growth and Inflation


  • Suna Korkmaz


Economic functioning will be realized non-problematically to an extent that countries can achieve financial deepening. Financial deepening will provide an important role for particularly transferring funds that are created by banks to real sector. Whether domestic credits created by banking sector have any effect on macro-economic variables such as inflation and economic growth for 10 chosen European countries was tested via panel data analysis. Annual data for 2006-2012 were used. As a result of panel data analysis, it was proved that domestic credits created by banking sector for 10 European countries did not affect inflation but did affect economic growth.

Suggested Citation

  • Suna Korkmaz, 2015. "Impact of Bank Credits on Economic Growth and Inflation," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 5(1), pages 1-4.
  • Handle: RePEc:spt:apfiba:v:5:y:2015:i:1:f:5_1_4

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    Cited by:

    1. ANYANWU, Felicia Akujinma & ANANWUDE, Amalachukwu Chijindu & OKOYE, Ngozi Theodora, 2017. "An Empirical Assessment of the Impact of Commercial Banks’ Lending on Economic Development of Nigeria," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 1(1), pages 14-29.
    2. repec:ris:ijafic:0026 is not listed on IDEAS
    3. repec:ana:journl:v:2:y:2016:i:2:p:3-14 is not listed on IDEAS
    4. Suwareh Darbo & Amandine Nakumuryango, 2018. "Working Paper 305 - Inflation Dynamics In Post-Secession Sudan," Working Paper Series 2432, African Development Bank.
    5. Zhang, Ying & Zhai, Ling & Sun, Haijia, 2019. "Does the level of financial leasing matter in the impact of bank lending on economic growth: Evidence from the global market (2006–2016)," Finance Research Letters, Elsevier, vol. 30(C), pages 352-359.
    6. Aušrinė Lakštutienė & Aida Barkauskaitė, 2016. "Evaluation of relationship between banks lending activities and the economies in Baltic countries," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 5(1), pages 141-156.
    7. Saba Mushtaq, 2016. "Causality between bank’s major activities and economic growth: evidences from Pakistan," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-11, December.

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