Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.11851/7139
Title: NON-CORE BANK LIABILITIES AND CREDIT GROWTH: EVIDENCE FROM AN EMERGING ECONOMY
Authors: Kılınç, Zübeyir
Karasoy, Hatice Gökçe
Yücel, Eray
Keywords: Core liabilities
non-core liabilities
credits
small open economy
VAR
VECM
Issue Date: 2013
Publisher: Emerald Group Publishing Ltd
Series/Report no.: International Finance Review
Abstract: The composition of bank liabilities has captured a lot of attention especially after the global financial crisis of 2008-2009. It is argued that a compositional change in non-core liabilities reflects the different stages of financial cycle. Banks usually fund their credits with core liabilities, which grow with households' wealth, but when there is a faster growth in credits compared to deposits, the banks often resort to non-core liabilities to meet the excess demand for loans. This chapter analyses the relationship between non-core liabilities and credits in a small open economy, namely Turkey. It investigates the relationship under alternative settings and presents consistent evidence on a robust relationship between credits and non-core liabilities under all frameworks. The study also verifies that elevated demand for credit may induce some increase in non-core liabilities. Finally, the relationship between non-core liabilities and credit growth is also affirmed in the long run.
URI: https://doi.org/10.1108/S1569-3767(2013)0000014006
https://hdl.handle.net/20.500.11851/7139
ISBN: 978-1-78350-171-7; 978-1-78350-170-0
ISSN: 1569-3767
Appears in Collections:Endüstri Mühendisliği Bölümü / Department of Industrial Engineering
Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection
WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection

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