Who responds more to monetary policy, conventional banks or participation banks?

Machine learning approach to drivers of bank lending: evidence from an emerging economy

“…These results provide evidence that regulatory capital plays a conservative role in bank lending (Cucinelli 2015;Pham 2015). The negative association between bank capital and bank lending in Turkey is also consistent with the findings by Aktaş and Taş (2007) and Macit (2012). After 20%, further capital ratio improvements have a minor and smoother effect on bank loans.…”

“…Combining the PDPs for GDP and LEAD, one can conclude that an increase in economic activity and the income level in any economy creates an opportunity for successful investment projects and encourages firms to increase their investment projects by demanding more bank loans (Kashyap et al 1993). Therefore, our findings on economic activity indicators are also consistent with those in many existing studies for various countries (Hoffman 2001;Calza et al 2003;Imran and Nishat 2013;Sarath and Van Pham 2015;Kapounek et al 2017) and for Turkey (Akinci et al 2012;Alper et al 2012;Macit 2012). It should also be noted that the correlation matrix directed us to handle the fourth lag of GDP and the current values of LEAD in our specification.…”

Islamic economics and Islamic finance in the world economy

“…Evidence from the bank‐level data, however, is less uniform. Evaluating the Turkish banking system, Macit () finds a stronger lending channel via Islamic banks. However, Zaheer, Ongena, and van Wijnbergen () find the weakened lending channel for Islamic banks in Pakistan and they attribute the finding to religion.…”

A behavioral analysis of the volatility of interbank interest rates in developed and emerging countries

“…When the Central Bank has adopted a tight monetary policy, i.e. raising the interest rate causes an increase in funding costs of banks and thus a reduction in loan growth (Macit, 2012). The adjustment of retail bank interest rates (deposit and loan rates) in response to changes in wholesale rates (central bank and interbank money market rates) is a key element in the transmission mechanism of the interest rate.…”