Does the Bank Lending Channel of Monetary Transmission Work in Turkey? /

Does the bank lending channel of monetary transmission work in Turkey? Using the May- June 2006 financial turbulence as an exogenous shock that prompted a significant tightening of monetary policy, this paper examines the loan supply response of Turkey's banks, depending on their balance sheet...

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Detalhes bibliográficos
Autor principal: Koeva Brooks, Petya
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2007.
coleção:IMF Working Papers; Working Paper ; No. 2007/272
Acesso em linha:Full text available on IMF
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520 3 |a Does the bank lending channel of monetary transmission work in Turkey? Using the May- June 2006 financial turbulence as an exogenous shock that prompted a significant tightening of monetary policy, this paper examines the loan supply response of Turkey's banks, depending on their balance sheet characteristics. The empirical results indicate that banks can play a role in Turkey's monetary transmission mechanism. Specifically, bank liquidity is found to have a significant effect on loan supply in Turkey. This suggests that the effect of monetary policy in Turkey can be propagated by the banking sector, depending on its liquidity position. 
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