Bank loan channel in the Turkish economy: An application on loans and growth

The bank loan channel is one of the important topics of discussion in the economics literature. As the weight of bank in the economy increases, the issue continues to be up to date. In this study, it is aimed to examine the relationship between bank loan types and GDP. In this context, the relationship between export loans, working capital loan, consumer loans, credit cards and fixed capital investments and GDP between the years 2003-2012 was analyzed by ARDL and ECM methods. According to the results of the analysis, significant and positive effects of credit card expenditures on economic growth in the short term and export credits on economic growth in the long term were determined. Fixed capital investments have a significant and positive effect on economic growth in every period. Increasing the positive effect on economic growth by channeling bank loans to investments can be presented to decision makers as a policy recommendation.