The Effect of Inflation on Fund Supply of Participation Banks: An Application to Türkiye with ARDL Approach
The primary economic variable that threatens price stability is inflation. Since inflation directly affects the quality of life standards of every individual living in a country, it is one of the most important problems for economies. The aim of this study is to investigate the effect of inflation o...
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Sivas Cumhuriyet Üniversitesi
2024-01-01
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| Series: | Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi |
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| Online Access: | https://dergipark.org.tr/tr/download/article-file/3125281 |
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| author | Mercan Hatipoğlu Caner Dilber |
| author_facet | Mercan Hatipoğlu Caner Dilber |
| author_sort | Mercan Hatipoğlu |
| collection | DOAJ |
| description | The primary economic variable that threatens price stability is inflation. Since inflation directly affects the quality of life standards of every individual living in a country, it is one of the most important problems for economies. The aim of this study is to investigate the effect of inflation on the fund supply of participation banks. The relationship between the amount of funds offered to the market by participation banks operating in Turkey and the CPI values were analyzed at monthly frequency for the period between of 2012-2022. In order to determine the stationary of the series, the structural break ADF unit root test were used and ARDL were preferred as the estimation model. According to the results of the analysis, inflation affects the fund supply of participation banks negatively in the short term. On the other hand, a positive significant relationship between inflation and participation banks fund supply was found in the long run. All in all in an inflationary environment, the loans offered by the participation banks to the markets follow a U-shaped trend, first decreasing and then increasing and increases in inflation rates threaten the credit growth of participation banks. In addition, we pointed out that it is a necessity to bring inflation rates to a modarate level so that participation banks are not excluded from financial markets in Turkey. |
| format | Article |
| id | doaj-art-67a130f650bc4927bf4b7417a3d68935 |
| institution | Kabale University |
| issn | 1303-1279 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | Sivas Cumhuriyet Üniversitesi |
| record_format | Article |
| series | Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi |
| spelling | doaj-art-67a130f650bc4927bf4b7417a3d689352025-02-02T14:34:17ZengSivas Cumhuriyet ÜniversitesiCumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi1303-12792024-01-01251273810.37880/cumuiibf.12931442057The Effect of Inflation on Fund Supply of Participation Banks: An Application to Türkiye with ARDL ApproachMercan Hatipoğlu0https://orcid.org/0000-0003-3307-5458Caner Dilber1https://orcid.org/0000-0002-2648-925XÇANKIRI KARATEKİN ÜNİVERSİTESİÇANKIRI KARATEKİN ÜNİVERSİTESİThe primary economic variable that threatens price stability is inflation. Since inflation directly affects the quality of life standards of every individual living in a country, it is one of the most important problems for economies. The aim of this study is to investigate the effect of inflation on the fund supply of participation banks. The relationship between the amount of funds offered to the market by participation banks operating in Turkey and the CPI values were analyzed at monthly frequency for the period between of 2012-2022. In order to determine the stationary of the series, the structural break ADF unit root test were used and ARDL were preferred as the estimation model. According to the results of the analysis, inflation affects the fund supply of participation banks negatively in the short term. On the other hand, a positive significant relationship between inflation and participation banks fund supply was found in the long run. All in all in an inflationary environment, the loans offered by the participation banks to the markets follow a U-shaped trend, first decreasing and then increasing and increases in inflation rates threaten the credit growth of participation banks. In addition, we pointed out that it is a necessity to bring inflation rates to a modarate level so that participation banks are not excluded from financial markets in Turkey.https://dergipark.org.tr/tr/download/article-file/3125281participation banksinflationfund supplyardl model.katılım bankalarıenflasyonfon arzıardl model |
| spellingShingle | Mercan Hatipoğlu Caner Dilber The Effect of Inflation on Fund Supply of Participation Banks: An Application to Türkiye with ARDL Approach Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi participation banks inflation fund supply ardl model. katılım bankaları enflasyon fon arzı ardl model |
| title | The Effect of Inflation on Fund Supply of Participation Banks: An Application to Türkiye with ARDL Approach |
| title_full | The Effect of Inflation on Fund Supply of Participation Banks: An Application to Türkiye with ARDL Approach |
| title_fullStr | The Effect of Inflation on Fund Supply of Participation Banks: An Application to Türkiye with ARDL Approach |
| title_full_unstemmed | The Effect of Inflation on Fund Supply of Participation Banks: An Application to Türkiye with ARDL Approach |
| title_short | The Effect of Inflation on Fund Supply of Participation Banks: An Application to Türkiye with ARDL Approach |
| title_sort | effect of inflation on fund supply of participation banks an application to turkiye with ardl approach |
| topic | participation banks inflation fund supply ardl model. katılım bankaları enflasyon fon arzı ardl model |
| url | https://dergipark.org.tr/tr/download/article-file/3125281 |
| work_keys_str_mv | AT mercanhatipoglu theeffectofinflationonfundsupplyofparticipationbanksanapplicationtoturkiyewithardlapproach AT canerdilber theeffectofinflationonfundsupplyofparticipationbanksanapplicationtoturkiyewithardlapproach AT mercanhatipoglu effectofinflationonfundsupplyofparticipationbanksanapplicationtoturkiyewithardlapproach AT canerdilber effectofinflationonfundsupplyofparticipationbanksanapplicationtoturkiyewithardlapproach |