The macroprudential policies in Turkey after the great recession

In this thesis, macroprudential measures that have been applied in Turkey after the period of Great Recession (2008 Global Financial Crisis) are analyzed through graphs and tables in terms of theoretical background, world examples and institutions-based regulations in Turkey. In the analyses; it is seen that macro-prudential measures taken by the CBRT, BRSA and other institutions have been successfully implemented in 2010-2015 period and have been effective in reducing the financial risks of the country. However, it can be said that the current account deficit started to increase again due to the developments experienced in domestic and global markets after 2015. Moreover; the credit volume started to increase especially with the help of the Treasury guaranteed credit fund and the fiscal and financial discipline that the country had reached began to disappear again. At this point, it is accurate to state that the authorities should take the necessary precautions as soon as possible and that the fiscal and financial discipline should be restored to prevent the country from facing new financial risks. In econometric analysis; interaction between the expansion of domestic credit volume in the banking sector and the current account deficit in Turkey is investigated for 1992:Q1-2017:Q4 period by the method of time series analysis with structural break. The stationarity of the series is tested by Vogelsang and Perron (1998) unit root test and the series are found to be stationary at different levels. The cointegration relations between the series are examined by the Bounds Testing method and the series are found to be cointegrated. Structural-break dates of the cointegration equation are determined by Bai and Perron (2003) method. Long and short term analyzes are carried out using ARDL method and it is estimated that 1% increase in domestic credit volume of banking sector increases the ratio of current deficit to national income by 0.21% in the long term and 0.09% in the short term. Error correction mechanism of the model operates.