TÜRKİYE’DE BANKA SERMAYE TAMPONLARI, KREDİ BÜYÜMESİ VE İŞ ÇEVRİMLERİ

Abstract

This paper empirically analyzes the relationship of the Turkish banks’ capital buffer with business cycles and credit growth over the period 2002-2017 by utilizing quarterly data. System generalized method of moments estimator is used and analysis is further carried out to investigate whether those effects change depending on type of banks. According to the estimation results, capital buffers held by Turkish banks move countercyclically over business cycles. However, this result does not hold for development and investment banks. Moreover, bank size, profitability and risk turned out to be significant determinants of commercial banks’ capital buffers. At the same time, banking sector concentration and 2008 global financial crisis seem to have an impact on capital buffers. The findings regarding the effect of capital buffer on bank lending indicate an inverse relationship. The results of the study have important policy implications in terms of capital adequacy regulations together with the countercyclical capital buffer measure, which was proposed by Basel III and had been adopted very recently.