IMF: Turkish banks vulnerable to monetary shocks
An IMF paper published on 1 October shows that liquidity-constrained banks in Turkey demonstrate sharper declines in lending when contractionary monetary policies are implemented.
Burcu Aydın and Deniz Igan, the paper's authors, use quarterly bank-level data in Turkey from 2002 to 2008 to study the impact of monetary and fiscal policies on the growth of credit to the private sector in Turkey during previous crises.
Aydın and Igan find evidence that liquidity-constrained banks show a much sharper
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