Investigation of The Effect of Bank Credits on Economic Growth: The Case of G-20 Countries

Abstract

The credits used by the private sectors are one of the important indicators that show how the sectors responded to these crises, especially during the economic crisis. This research focuses on the orientation and development of the credit market for the financial sector of the G20 countries in the 2001 – 2019 period. While investigating the causes of many macroeconomic and financial problems, the importance of the credit market has increased considerably during the crisis periods. The effective functioning of the financial system is important in order to determine the policies to be implemented and to create a sustainable economy. In this direction, the effect of bank credits on economic growth was analyzed in this paper. According to the findings obtained, it has been determined that there is a bidirectional causality relationship between credits and economic growth for G20 countries. In addition, the results of the causality relationship on the basis of individual countries are also presented.