Abstract
In this study, the monetary transmission mechanism and the effectiveness of the credit channel have been analyzed. According to the analysis results, the most important instrument in the applications of the monetary policy in Turkey is variable interest rates. Interest rates are the most significant main effectives for all other variables and they influence the total deposit, the total credits and the size of the total security. While an increase in deposits raise the size of loanable fund by banks,an increase in credits influences the industrial production index positively. It has been concluded that an increase in industrial production depends on the volume of the banks’ credit, whilst has been is determined that credits mostly depend on loanable funds and deposits held by banks. When the first 2 periods are disregarded, it was determined that the bank lending channel has been operating in Turkey.
Details
| Journal Section | Articles |
|---|---|
| Authors | |
| Publication Date | October 11, 2016 |
| Published in Issue | Year 2016 Volume: 13 Issue: 2 |
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