Pass-through between policy interest and various bank interests: the case of Türkiye
In this study, the pass-through between the policy interest rate and various bank interest rates, such as those for vehicles, housing, and necessities- and aims to determine the extent to which a change in short-term interest rates affects long-term bank interest rates. While this mechanism, also ca...
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| Language: | English |
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Trakya University
2025-06-01
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| Series: | Trakya Üniversitesi İktisadi ve İdari Bilimler Fakültesi E-Dergi |
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| Online Access: | https://tefeas.com/articles/pass-through-between-policy-interest-and-various-bank-interests-the-case-of-turkiye/doi/tefeas.14.01.04 |
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| _version_ | 1849431919999057920 |
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| author | Ayşe Ergin Ünal |
| author_facet | Ayşe Ergin Ünal |
| author_sort | Ayşe Ergin Ünal |
| collection | DOAJ |
| description | In this study, the pass-through between the policy interest rate and various bank interest rates, such as those for vehicles, housing, and necessities- and aims to determine the extent to which a change in short-term interest rates affects long-term bank interest rates. While this mechanism, also called interest rate pass-through, measures the reaction of bank interest rates to changes in the policy interest rate changes, the monetary transmission mechanism also represents the first stage of the interest rate channel. A complete and high degree of pass-through between the mentioned interest rates enhances the functionality of the transfer mechanism interest channel. In this context, the cointegration relationship between the policy interest rate in Türkiye for the period 2012:07-2024:08 and deposit, consumer loan, housing, commercial loan interest rates was examined using the Fourier Autoregressive Deceleration Distributed Cointegration Test (FADL). The analysis findings demonstrate the existence of a decoupling relationship between the policy interest rate and the deposit, consumer loan vehicle and housing loan interest rates. The study also found that the deposit interest rate has the highest interest rate pass-through and transition level, while the consumer loan interest rate exhibits the lowest degree of pass-through. |
| format | Article |
| id | doaj-art-55d9f97f0bb743fa8495f66bd340be3e |
| institution | Kabale University |
| issn | 2147-2483 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Trakya University |
| record_format | Article |
| series | Trakya Üniversitesi İktisadi ve İdari Bilimler Fakültesi E-Dergi |
| spelling | doaj-art-55d9f97f0bb743fa8495f66bd340be3e2025-08-20T03:27:29ZengTrakya UniversityTrakya Üniversitesi İktisadi ve İdari Bilimler Fakültesi E-Dergi2147-24832025-06-01141384810.47934/tefeas.14.01.04Pass-through between policy interest and various bank interests: the case of TürkiyeAyşe Ergin Ünal0https://orcid.org/0009-0004-5084-6431Tarsus Üniversitesi Uygulamalı Bilimler Fakültesi, Finans ve Bankacılık Anabilim Dalı, Mersin, TürkiyeIn this study, the pass-through between the policy interest rate and various bank interest rates, such as those for vehicles, housing, and necessities- and aims to determine the extent to which a change in short-term interest rates affects long-term bank interest rates. While this mechanism, also called interest rate pass-through, measures the reaction of bank interest rates to changes in the policy interest rate changes, the monetary transmission mechanism also represents the first stage of the interest rate channel. A complete and high degree of pass-through between the mentioned interest rates enhances the functionality of the transfer mechanism interest channel. In this context, the cointegration relationship between the policy interest rate in Türkiye for the period 2012:07-2024:08 and deposit, consumer loan, housing, commercial loan interest rates was examined using the Fourier Autoregressive Deceleration Distributed Cointegration Test (FADL). The analysis findings demonstrate the existence of a decoupling relationship between the policy interest rate and the deposit, consumer loan vehicle and housing loan interest rates. The study also found that the deposit interest rate has the highest interest rate pass-through and transition level, while the consumer loan interest rate exhibits the lowest degree of pass-through.https://tefeas.com/articles/pass-through-between-policy-interest-and-various-bank-interests-the-case-of-turkiye/doi/tefeas.14.01.04interest rates pass-throughmonetary transmission mechanismfourier adl |
| spellingShingle | Ayşe Ergin Ünal Pass-through between policy interest and various bank interests: the case of Türkiye Trakya Üniversitesi İktisadi ve İdari Bilimler Fakültesi E-Dergi interest rates pass-through monetary transmission mechanism fourier adl |
| title | Pass-through between policy interest and various bank interests: the case of Türkiye |
| title_full | Pass-through between policy interest and various bank interests: the case of Türkiye |
| title_fullStr | Pass-through between policy interest and various bank interests: the case of Türkiye |
| title_full_unstemmed | Pass-through between policy interest and various bank interests: the case of Türkiye |
| title_short | Pass-through between policy interest and various bank interests: the case of Türkiye |
| title_sort | pass through between policy interest and various bank interests the case of turkiye |
| topic | interest rates pass-through monetary transmission mechanism fourier adl |
| url | https://tefeas.com/articles/pass-through-between-policy-interest-and-various-bank-interests-the-case-of-turkiye/doi/tefeas.14.01.04 |
| work_keys_str_mv | AT ayseerginunal passthroughbetweenpolicyinterestandvariousbankintereststhecaseofturkiye |