Financial Interventions: Crowding Out, Bank Lending and Bank Capital Channels

This book presents evidences on how the financial interventions have effects on the balance sheets of banks in the Turkey and therefore, on the economy, during ?normal? times and during crises. As happened in the financial crisis of 2001 in Turkey, the effects of the Global Crisis of 2008 spread out from US economy on Turkish economy has been implying that financial interventions results from the desire to prevent banking and financial crises so that the worst business cycle contractions can be avoided. Thus, chapter one discusses the bases of the interventionist framework initiated by the Turkish government. Chapter two draws an attention to how the banking sector has been shaped by the financial interventions initiated by the government. Chapter three explores bank capital channel, regulatory effects, and riskiness in the TBS, and last one deals with the issue of crowding out, interest and exchange rate shocks, and bank lending in Turkey. The book should help shed some light on understanding of the issues of the operation of banking system, monetary theory and policy application. It should be especially useful to professionals in economics and finance fields.