Examination of the relationship between loans and economic growth in banking activities in Türkiye

The relationship between economic growth and bank loans is the relationship between the general level of economic activity and bank loans. Generally, there is a positive relationship between economic growth and bank loans, meaning that as economic growth increases, the loans given by banks increase. This relationship is a result of banks' macroeconomic policies aimed at supporting economic growth. Banks give loans to support economic growth and thus help increase production and sales. Loans granted to support economic growth provide the necessary financing source for production, import and export, especially for SMEs. This relationship is supported by research and analysis. There is a relationship between economic growth and bank loans, and this relationship is an important part of macroeconomic policies and is based on production growth. This issue has been the subject of many studies from past to present. While retail loans affect demand, production and sales of the construction sector and other sectors are directly or indirectly affected as supply affects demand. Financial support and project support for small and medium-sized enterprises played a positive role in promoting the production and export of small and medium-sized enterprises. This study examines the economic growth and the development of banking over the years. In the analysis section, data is used to analyze the relationship between retail and SME bank loans and economic growth in the 2007-2021 period. The stationarity structures of the variables were examined with unit root tests and the long-term relationship between the variables with ARDL analysis.