| Summary: | Although yet the studies done with the aggregated data provides information related with
bank credit channel, the empirical models within this studies involve a definition problem.
The definition problem mentioned here refers to the nondisclosure whether these studies
arise from the decrease observed within the credits as a result of tight monetary policy is
thence the loan supplies retrench of the banks or the decrease in the loan demands.
Indeed, the first case indicates the credit channel operation, and the second case states the interest rate channel operation. The aim of this study is to analyze the operation of
the bank loan channel within the 2001:05-2008:05 term during when the last two stand
by agreements done with the IMF was valid. In accordance with the findings acquired
from the structural VAR model in the study, it is found that the bank loan channel worked
for the Turkish economy during the inspected term.
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