Bank Lending in Turkey; Effects of Monetary and Fiscal Policies
The 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.
|Date of creation:||01 Oct 2010|
|Date of revision:|
|Contact details of provider:|| Postal: International Monetary Fund, Washington, DC USA|
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
|Order Information:||Web: http://www.imf.org/external/pubs/pubs/ord_info.htm|
References listed on IDEAS
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.:
- Allen N. Berger & Christa H. S. Bouwman, 2009. "Bank Liquidity Creation," Review of Financial Studies, Society for Financial Studies, vol. 22(9), pages 3779-3837, September.
- Ahmet Sengonul & Willem Thorbecke, 2005. "The effect of monetary policy on bank lending in Turkey," Applied Financial Economics, Taylor & Francis Journals, vol. 15(13), pages 931-934.
- Marco Arena & Carmen Reinhart & Francisco Vázquez, 2006.
"The Lending Channel in Emerging Economics: Are Foreign Banks Different?,"
NBER Working Papers
12340, National Bureau of Economic Research, Inc.
- Francisco F. Vazquez & Carmen Reinhart & Marco Arena, 2007. "The Lending Channel in Emerging Economies; Are Foreign Banks Different?," IMF Working Papers 07/48, International Monetary Fund.
- Hauner, David, 2008. "Credit to government and banking sector performance," Journal of Banking & Finance, Elsevier, vol. 32(8), pages 1499-1507, August.
When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:10/233. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow)or (Hassan Zaidi)
If references are entirely missing, you can add them using this form.