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Symmetry: Culture and Science
Volume 34, Number 1, pages 007-025 (2023)
https://doi.org/10.26830/symmetry_2023_1_007

ASYMMETRIC EFFECT OF BANK CREDIT CHANNEL FOR THE EASTERN EUROPEAN COUNTRIES

Durmuş Çağrı Yıldırım^1*, Tuğba Turan², Tuğba Kantarcı³

¹ Department of Economics, Tekirdağ Namık Kemal University, Süleymanpaşa, Tekirdağ, 59030, Türkiye
Email: cyildirim81@gmail.com
Web: http://dcyildirim.cv.nku.edu.tr
ORCID: 0000-0003-4168-2792

² Department of Economics, Tekirdağ Namık Kemal University, Süleymanpaşa, Tekirdağ, 59030, Türkiye
Email: tugbaturantt@hotmail.com
ORCID: 0000-0003-0077-5909

³ Department of Economics, Tekirdağ Namık Kemal University, Süleymanpaşa, Tekirdağ, 59030, Türkiye
Email: tubakantarci@gmail.com
ORCID: 0000-0002-2257-430X

^*corresponding author

Abstract: In this study, the efficiency of the bank credit channel of the monetary transmission mechanism in the context of Eastern European countries (Bulgaria, Hungary, Poland, Romania, and Turkey) is examined. As an indicator of the monetary policy stance, the effects of central bank reserves, one of the non-traditional policy tools, are handled with non-linear methods. The analysis period varies according to the data availability of the countries (Bulgaria 2004:4-2020:5, Hungary 2004:4-2020:5, Poland 2009:3-2020:5; Romania 2007:1-2020:5 and Turkey 2005:1- 2020:5). The results show that the balance sheet strategy has asymmetric effects for countries.

Keywords: Bank Credit Channel, Monetary Policy, Threshold VAR, Eastern European Countries.

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