The Effects of Macro-Prudential Policies on The Turkish Banking Sector Credit Risk After the Global Financial Crisis2 2

Macro-prudential policies have an important role in ensuring financial stability and have been extensively applied in T & uuml;rkiye after the 2008 global financial crisis. AsAa result of the decisions taken by the Banking Regulation and Supervision Agency during the COVID-19 epidemic, the share of banks' non-performing loans in total loans decreased, and loans under close monitoring began to express the sector's credit risk better. The study aims to analyse the effects of macroprudential policies implemented to ensure financial stability in T & uuml;rkiye after 2008 on the credit risk of the Turkish banking sector. According to the dynamic panel data model estimation results carried out with the Generalized Method of Moments estimators, the effect of the tightening and expansionary macroprudential index on banks' lending tendency is statistically insignificant. However, the increase in the macroprudential policy index also reduces banks' credit risk in a statistically significant way. In other words, macroprudential policies positively affect credit risk. According to the findings of international academic studies, while the effect of macroprudential policies on banks' lending tendency and risk level is strong in developed Western countries, its effect is relatively weak in T & uuml;rkiye. .