Abstract:

2008 financial crisis has led to a differentiation in the traditional monetary and fiscal policies implemented by the economies. With 2013 global financial recession, 2018 financial squeezing and pandemic process, the economic stability tried to ensured by structural policies besides monetary and economic policies. Especially financial deepening and exchange rate volatility brought the concept of stabilization and dollarization back to the agenda. In this research, it is aimed to examine the change in deposit and loan dollarization levels of participation and deposit banks operating in the Turkish banking sector after the exchange rate shock in 2018. The research was carried out in two stages, covering the periods 2012:08-2018:08 and 2015:08-2021:08, taking into account the structural breaks in deposits in the Turkish banking sector in 2018. However, in order to determine the differences between the periods, the data were subjected to the paired sample t-test. In the research findings, it has been determined that the level of deposit and loan dollarization in participation banks is higher than deposit banks and the banking sector, and participation banks react asymmetrically to the dollarization process compared to the banking sector and deposit banks.

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