@article{2020,title={Determinants of Bank Credit in Turkey: An Autoregressive Distributed Lag (ARDL) Approach},abstractNode={This paper examines the key factors determining bank credit allocation in Turkey for the period 2000Q1-2016Q4. Employing the Autoregressive Distributed Lag (ARDL) Approach, the study reveals that bank deposits and bank assets are significant drivers of bank credit supply in both short and long-run. Broad money supply, bank efficiency, financial access, and inflation exert a significant impact on bank credit only in the long-run. The study offers some recommendations for policy. To enhance growth in bank lending and stimulate credit demand, there is the need to implement strategies to strengthen bank deposit base. Lowering the reserve requirement to increase cash holdings in banks vault is essential for bank credit supply. In addition, there is a necessity to design feasible policies to maintain the inflation rate at the optimum grade to provide domestic economic stability. Consequently, this paper intends to bridge the gap in the literature by scrutinizing the short and long-run determinants of bank credit in Turkey. The paper contributes to literature in two ways. First, it applies the autoregressive distributed lag (ARDL) approach to investigate both demand and supply-side factors affecting bank credit. Second, unlike other studies that used bank-level data, this paper employs aggregate data from the World Bank which encapsulates the overall banking sector.},author={Yüksel Akay ÜNVAN},year={2020},journal={Turkish Studies-Economics,Finance,Politics}}