Non-performing loans in turkish banking sector and macro economic effcts: Example of Turkey

In the Turkish banking sector, ratio of non-performing loans in total loans significantly increased in crisis periods and affected negative both banking sector and real sector. In this study, banking risks, the most important risk of and the most important risk of credit risk and non-performing loans are explained. The causes of non-performing loans, derivates and effects of unpaid loans have impact on economic problems are informed. in Turkish banking sector.Non-performing loans to the real sector and banking sector of the negative effects are explained. At the end of study, non-performing loans relation with banking sector volume of domestic credit growth rate, real GDP growth rate, total private consumption expenditures growth rate and total fixed capital expenditures growth rate are tested with Granger causality test and then these variables impact-response functions results are estimated and results are analysed.