Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5100871 | Journal of International Economics | 2017 | 16 Pages |
Abstract
We examine the role of the international credit channel in Turkey over 2005-2013. We show that larger, more capitalized banks with higher non-core liabilities increase credit supply when capital inflows are higher. This result is stronger for domestic banks relative to foreign banks and survives during the crisis period of post-2008, when foreign banks in general stop lending in emerging markets and retreat to their home countries. By decomposing capital inflows into bank and non-bank flows, we show the importance of domestic banks' external borrowing for domestic credit growth.
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Authors
Yusuf Soner Baskaya, Julian di Giovanni, Åebnem Kalemli-Ãzcan, José-Luis Peydro, Mehmet Fatih Ulu,