Baskaya, Yusuf SonerDi Giovanni, JulianKalemli-Özcan, ŞebnemPeydró, José-LuisUlu, Mehmet Fatih2019-12-162019-12-162017Baskaya YS, Di Giovanni J, Kalemli-Özcan S, Peydró JL, Ulu MF. Capital flows and the international credit channel. J Int Econ. 2017 May;108 Suppl 1:S15-22. DOI: 10.1016/j.jinteco.2016.12.0030022-1996http://hdl.handle.net/10230/43174We examine the role of the international credit channel in Turkey over 2005–2013. We show that larger, more capitalized banks with higher non-core liabilities increase credit supply when capital inflows are higher. This result is stronger for domestic banks relative to foreign banks and survives during the crisis period of post-2008, when foreign banks in general stop lending in emerging markets and retreat to their home countries. By decomposing capital inflows into bank and non-bank flows, we show the importance of domestic banks' external borrowing for domestic credit growth.application/pdfengUnder a Creative Commons license https://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/articlehttp://dx.doi.org/10.1016/j.jinteco.2016.12.003Capital flowsBank-lending channelBank heterogeneityinfo:eu-repo/semantics/openAccess