Factors affecting the loans supply in the banks

The purpose of this study, is to determine the factors affecting the credit volume in the Turkish banking sector. In this research, an econometric model regarding the factors affecting the credit volume was created, and the model was determined using the regression analysis model. The factors affecting the credit volume (HR) are the ones that the financial sector is the most concerned about and the ones that the investors take into account to gain information about a country's economy are considered the most basic economical indicators, which are, economic growth (industrial production index), inflation (consumer price index), Consumer Credit Interest Rate (CCIR), Bank Credit Extension Capacity (BCEC), unliquidated incumbrance, (UI), CB Interest Income and Rediscount Income (CBII), and they were used as variables. In this study, unit root tests were conducted primarily in order to determine the stability of the series, and as a result of the unit root tests, simple regression model was estimated. Monthly data between the years 2005 and 2012 have been used in the study. CBTR data from the database is provided. The data analysis was performed with software package Eviews 8. Data analysis included in the unit root test was conducted in the ADF and PP tests. In this study, the relationship between variables in the determination of the model were estimated with OLS. An analysis of regression analysis yielded the following results; there is a statistically significant positive correlation between the Credit Volume (HR) and the Bank Credit Extension Capacity (BCEC). This situation shows that the increase in the bank credit extension capacity also causes an increase in the credit volume. Between the HR and Central Bank Interest Income and Rediscount Income (CBII), there is a negative and statistically significant relationship. The increase in the CB's interest income causes an increase in the credit interests. Increase in the consumer credit interest rate directly affects Turkey's already fragile economic state. Thus, the econometric findings it is acquired shows that between the Consumer Credit Interest Rate (CCIR) and total credit volume, there is a negative and statistically significant relationship. A significant relationship between the HR and the other variables could not be found.