The effect of Central Bank interest decisions on banks' credits and deposits total: The case of Malatya

The Central Bank which aims to ensure price stability, full employment, economic growth and stability in financial markets and interest rates in the economy, uses monetary policy tools to achieve these objectives. The instruments used by the Central Bank in implementing its monetary policy include open market transactions, reserve requirement policies and interest rate policies. In this study conducted to determine the relationship between the interest rates applied by the Central Bank and the interest rates applied by banks to loans and deposits, the overnight, late liquidity window and 1-week repo interest rates of the Central Bank between 2010-2017 and the retail and commercial loans of the between totals examined. In the comparison of the Central Bank interest rates between 2010 and 2017 and the total loans and deposits of the banks in Malatya province, it was found that if the interest rates of the Central Bank decreased, the sum of loans increased and the total deposits decreased and it was determined that these changes did not occur in the short term and that the responses of banks and fund owners to the Central Bank interest rates were realized with a delay of one month. Keywords: Central Bank, Monetary Policy, Interest, Credit, Deposit