A case study on the relationship between the bank loans and growth in Turkey: 1995-2010

In this study, we tried to determine the direction of the relationship between the growth of bank loans in Turkey. In addition, the monetary transmission mechanism and the most important element of this channel were investigated in detail over the credit channel kısacaca evaluated in the Turkish banking system. In our study, for the period 1995-2010, using quarterly data analysis were done. The analysis, the credit variable, the real exchange rate represents the volume of credit is the GDP growth rate represents the percentage change in real terms. This study was to determine the direction of the Unit Root Test, Granger Causality Analysis and Regression Analysis were used as statistical analysis methods. Methods of analysis used to explain the relationship between growth and credit has helped.As a result of the analysis and evaluation, as the structure of the banking sector credit volume therefore decreases the effectiveness of the credit channel has decreased the power to influence growth. The relationship between credit and growth is based on a one-way causal relationship. Credit growth in the direction of the relationship to be true, but not to affect growth in loans, loans have reached the conclusion does not affect growth.Keywords: Credit, Credit Channel, Loan Classification, Monetary Transmission Mechanism, Growth, Granger Causality Analysis, Regression Analysis.