Abstract:

The credit process, which is one of the reasons for the existence of commercial banks, is of great importance in terms of economic functioning. However, as a result of the bank’s failure to pay back the loans they have given, both the financial and real sector and the country’s economy can be negatively affected. The bankruptcy resulting from the crisis in the past has been a huge cost for both the country and the world economy. Especially today, one of the main reasons for the economic stagnation that shows its impact in Turkey can be stated that it is due to non-refunded problematic loans. From this point to the move, the identification, the course and the explanation of what can be caused by both macro and micro variables will provide useful information in terms of the identification of the problem. In this study, the panel data analysis method will reveal whether there is a meaningful relationship between both bank-specific and macroeconomic variables that can lead to problematic loans of 25 commercial banks between 2008 and 2018. The aim of the study is to contribute to the literature by analyzing the ratio of problematic loans on macroeconomic variables which are the basis for the country's economies' dynamics to maintain their healthly operations, revealing which variables are interacting on problematic loans and how these variables affect problematic loans. Furthermore, the absence of the study that can be addressed with so many variables that may be related to problematic loans in previous studies reveals the originality of the study.