Determinants of Bank Loans to be Liquidated in an Emerging Market
Determinants of Bank Loans to be liquidated in an Emerging MarketCredit volume has increased substantially in emerging markets in recent decades. Inevitably, debt liquidation has also grown. This paper aimed to search the relation between liquidated debt types and certain macroeconomic factors. Foreign Exchange Credits are found to be a determining factor for all types of credits to be liquidated in our sample. Moreover, a negative relation between other type debt to be liquidated and 2-year government bond yield is found to be statistically significant. Whereas, TRY/USD parity is found to be a significant factor for vehicle loan to be liquidated.
Keywords - Liquidation, Interest Rates, Bank Loans