Browsing by Subject "Bank loans"

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    The effects of monetary policy shocks on bank loans
    (2022-09) Özçelikkale, Kaan
    This thesis examines the effects of monetary policy shocks on bank loans. I use a vector autoregression (VAR) model with external instrument identification, which is constructed using high-frequency analysis. Gertler and Karadi (2015) methodology is followed. I also consider the information effects and employ the surprises, which are measured by Miranda-Agrippino and Ricco (2021). I find that contractionary monetary policy shocks have significant negative effects on bank loans. The commercial loans growth statistically significantly drops both immediately after the contractionary monetary policy shock and a year after the shock. On the other hand, the consumer and real estate loans growths modestly decrease but it is not statistically significant. Since some of the findings indicate a statistically insignificant decrease in the growth, I also check the response of the credit stocks. There are significant drops in all the credit stocks at least for some periods. Lastly, I show that the findings are robust to the sample period, adding a new variable and the policy indicator. All the findings are consistent with the theory and literature.
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    Essays on housing market and bank loans
    (2022-08) Ayberk, İdil
    This dissertation comprises three essays about the housing market and banks’ loan portfolios at the province level in Turkey. The first essay focuses on the supply side of the housing market. The price elasticity of housing supply is estimated using quarterly data over the period 2008-2017, and the factors that drive the differences across provinces are investigated. We find that Turkey has a low housing supply elasticity on average, but elasticity estimates exhibit variation across provinces. Our results suggest that population, geographical constraints and local regulatory conditions are significant factors in explaining the differences in housing supply elasticity estimates. In the second essay, we answer the question of whether banks change their loan allocation with the appreciation of house prices and whether state-owned banks behave like other banks with different ownership structures by using province-level data over the 2007Q4–2015Q2 period. The undevelopable land share and mortgage rate are employed as instruments for house price growth. We find that commercial loans are crowded out by mortgage, consumer, and construction loans with the increase in house prices; in addition, state-owned banks are found to reduce their commercial, and in particular agricultural loans, more than private banks as house prices appreciate. In the third essay, we examine the effect of house price appreciation on non-performing loans (NPLs) of domestic banks between 2009Q1–2016Q4, when real house prices were increasing. We document that non-performing total, commercial, and consumer loans decline as house prices increase. No difference among banks by ownership type is observed.