Monetary Policy Decisions’ Impacts on Bank Leverage and Liquidity Ratios in Türkiye

Authors : Aydın Gürbüz, Emre Tatlıyer, Meltem Kılıç, Yücel Ayrıçay

Pages : 590-604

Doi:10.24988/ije.1345625

View : 103 | Download : 159

Publication Date : 2024-06-06

Article Type : Research Paper

Abstract :This study explores how banks in the Turkish banking system design their asset and equity structures in return for monetary policy changes. In this context, between the periods of 2010-2020, we estimate bank leverage and liquidity with multiple monetary policy indicators and by employing two econometric models of static and dynamic panels. According to the results, banks reply to monetary expansion by picking up their leverage ratios on the liability part. On the other hand, banks reply to monetary expansion by enhancing their liquidity positions on the asset part. Also, the originality of our empirical study comes from that; this is the first attempt to evaluate the effects of monetary policy changes simultaneously on both sides of bank balance sheets’ in Türkiye.
Keywords : Para politikası, Banka kaldıracı, Banka likiditesi