Lending behaviors of Turkish banks during elections and business cycles
Author
Ali, Furqan
Advisor
Önder, Zeynep
Date
2017-09Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
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Abstract
This thesis examines the lending behavior of Turkish banks during elections and
business cycles using quarterly data for the period December 2001-September 2016.
Banks are classified on the basis of their ownership as public, private and foreign
banks and their deposit collecting ability as deposit and development banks. Five
general election and three local election events are studied during this period. I find
that all banks except foreign development banks increase their nominal and real loan
growth rates during general elections. Loan growth rates of public deposit and
development banks are found to increase during local elections more than that of
private banks. The results of one-step system GMM model suggests that loan growth
rate of public banks is less pro-cyclical than that of private banks. Public deposit
banks are found to lend pro-cyclically while public development banks are not. It is
also found that public banks increase their loan growth rate in periods with negative
GDP growth rate.