Non-performing Loans in Turkish Banking Sector and Balance Sheets Effects

Abstract

In the 21st century, while the scope of banking activities has been expanding every day, collecting deposits and providing credit remain as their main and most important functions. They transfer the collected funds thanks to the market confidence they create back to the market in terms of the credits they give. For the organizations operating in the banking sector, crediting is the highest revenue earning source. However, uncollected loans may disrupt the activities of banks and may reduce their effectiveness. Therefore, the control of bank credits has a particular importance in the bank balance sheets. In this study, the relationship between bank balance sheets and non-performing loans (NPL) will be analyzed using Granger causality test and vector autoregressive (VAR) method. This study aims to discuss the impact of NPL on balance sheets and contribute to making correct credit decisions. It also intends to assist to reduce the NPL ratios of banks and minimize the level of negativity in their financial statements.

Assessing the Impact of Non-Performing Loans on Economic Growth in Turkey

“…They carry out this task within the framework of activity, efficiency, and the opportunity cost principles. For these reasons, they are the most critical institutions of economy in terms of authority and responsibility (Erdoğdu 2015).…”

Güçlü Yönleriyle Katılım Bankacılığı

“…Şahbaz ve İnkaya (2014), çalışmalarında 1988-2012 yıllarına ait çeyrek dönemlik verileri kullanarak takipteki krediler ile büyüme oranı, özel sabit sermaye harcamaları, kredi hacmi ve özel tüketim harcamaları arasında çift yönlü ve uzun dönemli ilişkinin olduğunu tespit etmişlerdir. Erdoğdu (2015), 1986 Ocak-2015 Nisan dönemlerine ait aylık verileri kullanarak, bankaların toplam krediler, özel karşılıklar, kâr-zarar ve yedek akçeler kalemleri ile takipteki kredi oranlarının nedenselliğini analiz etmiştir. Takipteki kredilerin, banka bilançoları ve kârlılık üzerinde olumsuz etkileri olduğunu tespit etmiştir.…”