The effect of loans given by participation banks to the real economy on growth: Example for Turkey for the period of 2005-2017

This research consists of three parts. In the first part, an overview of the banking sector was made. In the second part, the Participation Banks in Turkey and their effects on the Turkish economy are investigated theoretically. In the last section, the effect of the loans given by the Participation Banks operating in Turkey to the real sector on economic growth; Econometric analyzes and tests were carried out using quarterly (quarterly) data, covering the period from the first quarter of 2005 to the first quarter of 2017. In this study, stationarity tests were carried out with ADF and PP unit root tests. Johansen cointegration and Granger causality analyzes were performed. Finally, with the Granger causality test, a unidirectional and positive causality was found from Participation Bank loans to GDP. While there is one-way and positive causality from Development and Investment Banks to GDP, it is seen that there is a two-way and positive causality from Deposit Banks to GDP.