Abstract:

This study analyses the relationship between the deposit banks and the amount of credit and economic growth. For this purpose, using the data of the 2003:I-2017:III period for Turkey, the method based on the distributed authoregresive border test of the delay developed by Pesaran, Shin & Smith (2001) has first studied the co-integration relationship between the total credit volume of the deposit banks and economic growth. Deposit banks, public and private capital banks, have also discussed the impact of the property structure of the banks on this relationship. The study found that the long-term increase in the total credit volume of the deposit banks had a negative impact on GDP, but in the short term the effect was positive. For public banks, similar results are achieved, while for private banks, the long-term effect is positive and the short-term effect is negative.

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