Causalities Between Commercial Bank Credits And Non-Performing Loans in Turkey

Kaşif Batu Tunay (), İlyas Akhisar () and Fuat Çamlıbel ()
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KaÅŸif Batu Tunay: Marmara University
Ä°lyas Akhisar: Kocaeli University
Fuat Çamlıbel: Cumhuriyet University

Eurasian Business & Economics Journal, 2017, vol. 12, issue 12, 93-102

Abstract: In the study, analyzes the reciprocal interactions between the non-performing loans and credit-to-GDP gap in Turkish commercial banking sector. The analysis is based on a panel data set of 27 banks that actively lend commercial credits to the quarterly data for the period 2006: 4 to 2016: 3. Panel causality tests were used as an analysis method. The findings have shown that there are strong interactions between the credit-to-GDP gap and the nonperforming loans, which banks are considered to reflect current credit risks. Since the credit-to-GDP gap is regarded as a leading indicator of systemic bank crises, the mentioned interactions support the argument that the nonperforming loans are a significant dynamic of possible bank crises.

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:eas:buseco:v:12:y:2017:i:12:p:93-102

DOI: 10.17740/eas.econ.2017.V12-7

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