Do FED's unconventional monetary policy and CBRT's ROM facility affect Turkish banks' external borrowing?

At the end of 2008, FED had to reduce its monetary policy interest rates to near zero level as a response to house market collapse. As this policy response was not find as enough, FED started to purchase papers, which resulted in an increase of its balance sheet to 4,5 trillion U.S. dollar. By large scale asset purchases, FED targeted to lower the yields on longer-term securities in order to increase the price of remaining securities and finally, to increase investment, demand for consumer durables and the prices of more risky assets. FED's unconventional policy had some spillover effects on emerging markets who enjoyed cheap and abundant liquidity during that period. During same period, CBRT introduced ROM facility by which banks were able to use foreign exchange for their Turkish Lira reserve requirements. The aim of this study is to demonstrate whether FED's unconventional monetary policy and CBRT's ROM facility affected Turkish banks' external borrowings by using Event Study, Regression Analysis and VAR. The event study indicates that although FED's unconventional monetary policy had significant effects on the external borrowings, the second phase had more impact. Regression analysis also indicates that FED's and CBRT's policies affect banks' external borrowing levels. Finally, the VAR system indicates that both FED's and CBRT's policies may have effects on the external borrowing but the CBRT's effect lasts longer compared to FED's. As a result, both FED's unconventional monetary policy and CBRT's ROM facility have impacts on Turkish banks' external borrowings. For the following study, the impacts of FED's unconventional monetary policy and its effects on emerging countries would be studied by using panel data set.