Macro prudential policies effects on credit volume of Turkish banking system

Following the Global Financal Crisis in 2008, the use of macro prudential policies has become increasingly important to ensure financial stability. With the recent introduction of macro prudential policies, the trial and error method was used for the effectiveness of policy instruments, which indicated the need for studies on macro prudential policies. From this point, aim of this study is to evaluate the impact of macro prudential policies, which have been frequently used since 2010 to ensure financial stability on the credit volume of the Turkish banking system. With in this context, from January 2011 to December 2018 using data from the monthly frequencies within the banking sector's total loan volume in Turkey, the total credit volume of deposits in banks, investment and development banks total loan volume and consumer loans ratios were examined. Data were analyzed with VAR model using E-Views program. As a result of the analysis, it was concluded that macro prudential policies implemented by the Central Bank had a regulatory impact on credit volume.