Does the Bank Lending Channel of Monetary Transmission Work in Turkey?
IMF Working Papers, December 1, 2007
Source details
- Canonical URL
- Does the Bank Lending Channel of Monetary Transmission Work in Turkey?
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Bibliographic details
- Authors: Petya Koeva Brooks
- Published: December 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451868357.001
Research question and context
- Core question: Does the bank lending channel of monetary transmission work in Turkey?
- Context: Uses the May–June 2006 financial turbulence as an exogenous shock that prompted a significant tightening of monetary policy.
Methodology and data
- Identification strategy: Treats the May–June 2006 financial turbulence as an exogenous shock to monetary policy.
- Empirical focus: Examines the loan supply response of Turkey's banks depending on their balance sheet characteristics, with particular attention to bank liquidity.
Key findings
- Banks can play a role in Turkey's monetary transmission mechanism.
- Bank liquidity is found to have a significant effect on loan supply in Turkey.
- Implication from findings: The effect of monetary policy in Turkey can be propagated by the banking sector, depending on its liquidity position.
Subjects and keywords
- Subject: Bank credit, Banking, Commercial banks, Liquidity, Loans
- Keywords: bank, lending channel, loan, WP