Eight Observations on Relationship Lending in Türkiye

Ayse Karasoy, Gokce Karasoy Can and Emine Ozgu Ozen

CBT Research Notes in Economics from Research and Monetary Policy Department, Central Bank of the Republic of Turkey

Abstract: [EN]This note aims to provide an overview of “relationship lending” (RL) which represents the beneficial alliance between the lender and the borrower in terms of available funds and affordable rates for Türkiye. The examination of the data provides following findings: 1) When the relationship is measured by loan share (the weight of the bank in the overall debt of the firm), it is strongly associated with loans having longer maturities and lower interest rates. 2) These observations are even stronger for small and medium-sized firms. 3) The correlation between loan share with interest rates and maturity changes over time. 4) RL has a more pronounced effect on interest rates and maturities when the bank is the main lender. 5) The duration (length of the relationship between bank and the firm) as an RL indicator works in the same direction as loan share. 6) Duration is also strongly associated with larger amounts of new loans. 7) The number of lenders matters. A firm’s engagement with multiple banks might signal its riskiness. Having more lenders results in higher interest rates and shorter loan maturities. 8) Securing multiple new loans from the same bank within a quarter often leads to slightly higher interest rates and shorter maturities. These observations demonstrate the existence of the phenomenon of RL within the Turkish banking sector, thereby affording borrowers with strong relations access to more favorable credit conditions. The results are mostly in line with the literature on relationship lending and likely to motivate further research on credit markets and transmission channels. [TR]Bu not, Turkiye icin borc veren ve borc alan arasindaki faydali ittifak anlamina gelen "iliski bankaciligi" (iB) kavramina genel bir bakis saglamayi amaclamaktadir. Gozlemler soyle ozetlenebilir: 1) “guclu iliski”, kredi payi (bankanin firmanin toplam borcu icindeki agirligi) ile olculdugunde, daha guclu iliskiler daha uzun vadeler ve daha dusuk faiz oranlari ile dogru orantilidir. 2) Bu gozlemler kucuk ve orta olcekli firmalar icin daha da gucludur. 3) Bunlar arasindaki (kredi payi ile faiz oranlari ve vade) korelasyon zaman icinde degismektedir. 4) iliski bankaciligi, bankanin ana borc veren oldugu durumlarda faiz oranlari ve vadeler uzerinde daha belirgin bir etkiye sahiptir. 5) Bir iliski gostergesi olarak sure (banka ile firma arasindaki iliskinin uzunlugu) degiskeni, kredi payi ile benzer yonde calismaktadir. 6) Ayrica sure, daha yuksek tutarli yeni krediler ile guclu sekilde iliskilidir. 7) Kredi saglayan banka sayisi onemlidir. Birden fazla banka ile kredi iliskisine girmesi, firmalarin kredi riskliligine isaret edebilir. Daha fazla banka ile calismak daha yuksek faiz oranlari ve daha kisa kredi vadeleri ile sonuclanmaktadir. 8) Bir ceyrek icinde ayni bankadan birden fazla yeni kredi sozlesmesi daha yuksek faiz orani ve daha kisa vadeler ile dogru orantilidir. Bu gozlemler, Turk bankacilik sektorunde IB olgusunun varligini gostermekte ve boylece guclu iliskilere sahip firmalarin daha uygun kredi kosullarina erisim sagladiklarini gostermektedir. Bu gozlemler cogunlukla iliski bankaciligi literaturu ile uyumludur. Bulgularin kredi piyasalari ve aktarim kanallarina iliskin pek cok arastirmayi motive edecegi degerlendirilmektedir.

Date: 2025
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