DETERMINANTS OF CONSUMER LOANS IN TURKEY: A STUDY ON ALTERNATİVE CONSUMER LOANS

Abstract

Consumer loans that their risks are lower than corporate loans and their profitability is satisfactory are an important type of placement for banks. It is seen that the households also have a serious demand for these loans to finance various consumption expenditures. These assessments are valid to a large extent in Turkey and therefore the volume of consumer loans has increased in recent years. In our study, the determinants of consumer loans in Turkey were investigated econometrically in the context of international literature. Using two dynamic regression models, a sample of quarterly data covering the periods 2005:4 to 2022:4 was analyzed. In the analyzes, it was tried to determine the variables explaining the alternative consumer loans. The findings revealed that consumer loans are dependent on the past  and are affected positively by the disposable income level and negatively by the interest rate in almost all estimates. In some models, inflation and unemployment rates were also found to be effective on consumer loans. Consumer loans are affected positively by the inflation rate and negatively by the unemployment rate.