Abstract:

The aim of this study is to reveal the relationship of the increase in domestic loans in the world with macroeconomic factors and levels of financial corporation. Method - This study used a set of data obtained from the financial development database provided by the World Bank, covering the years 2001-2019 for all countries in the world. In panel data regression with fixed effects depending on the variable is the non-profit domestic earnings ratio of domestic loans distributed to a particular section; independent variables are macroeconomic factors such as cash supply, exchange rate, interest rate, price index. There are two indicators that represent the level of financial corporationalization. The first index shows the extent to which the laws are guaranteed by the borrowers and donors in the financial markets, while the other index indicates the effectiveness of the debtor information provided by the credit register institutions in information about the other debtors. The findings - The expanding monetary policies have found strong findings that domestic loans will also increase. On the other hand, the findings have shown that the increases observed in the consumer price index will reduce domestic loans. There is no evidence that the level of financial corporationalization affects the amount of domestic loans. Discussions on the positive and negative economic consequences of the increase in the amount of loans continue while the importance of studies that reveal the causes of the increase in distributed loans is also increasing. This study often contributes to the literature of the importance of macroeconomic factors, taking into account the differences in financial corporation between countries. Econometric analyses applied in the study reveal the negative relationship between the consumer price index and domestic loans and the positive relationship between cash supply and domestic loans. These reverse effects show that when evaluated together, policy makers should be cautious.

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