Turkey bank loans effect on net SME formation

It is stated at the corresponding literature that there have been difficulties in reaching fund sources in Türkiye. As a result of difficulties in reaching, bank loans; there are troubles in setting up new Small and Medium Sized Enterprises and economy cannot reach more developed levels. There is thought to be credit rationing problem as one of the basic reasons. It is analyzed with the thesis; titled "Turkey Bank Loans Effect on Net SME Formation"; that banking sector loans effect on net SME formation and indirectly Industrial Production Index; for solving credit rationing problem and supporting economic development. It is thought that; optimal bank groups loan lending in optimal areas; both could decrease credit rationing problem to minimum levels and carry economy to more developed levels. In this context, it is aimed to contribute government's SME formation support policies and banks' credit policies. Sub-groups of statistical territorial units, provinces and field of activities are stated; for the segmentation of banks with state capital and non-state (private) capital; and for Total Loans, Living Loans and Non-Performing Loans groups; by using net SME formation, as intermediary variable between banking sector loans and Industrial Production Index. The tests used with the data; 2010:01-2018:06 are ADF and Structural Break Unit Root Tests, ARDL, Toda Yamamoto Causality Test and for panel data; ADF Unit Root Test, SwamyS, Westerlund Statistics and Dumitrescu Hurlin Causality Tests. According to the results of the statistical regional analysis performed; in terms of non-performing loans; for statistical regions out of West Anatolia region; loans by banks with private capital tend to develop net SME formation and indirectly Industrial Production Index. As a result of the analysis done through provinces; the loans given, in almost all the provinces, leading by Giresun, Zonguldak, Gümüşhane, Gaziantep and Artvin by both capital groups, tend to improve the economy. The results are compatible with the literature. Keywords: Net SME Formation, Total Banking Sector Loans, Living Loans, Non-Performing Loans, Industrial Production Index.