THE RELATIONSHIP BETWEEN SYNDICATION LOANS AND LOANS TO THE MANUFACTURING SECTOR: THE CASE OF TÜRKİYE

The main function of financial markets is to bring together the economic units that have excess funds and the economic units in demand for funds. In this context, banks are one of the most basic institutions of financial markets where fund transfers necessary for the continuity of economic life. If the amount of loan to be granted by banks is high, banks apply to syndicated loans created by more than one participant. It is important for the economic units that where the funds obtained from the syndicated loans will be used. In this study aimed to determine the relationships between syndicated loans received by the Turkish banking sector and loans granted to production-oriented sectors. The results show that the effect of syndicated loans on strategic sectors in the Turkish economy varies asymmetrically and on a sectoral basis, and the relationships between syndicated loans and sectoral loans vary largely according to the financing structure of the sectors and their dependence on external resources. The study also reveals that syndicated loans received by Turkish banking sector can create different effects on a sectoral basis and loan distribution processes are shaped according to sectoral dynamics. These results emphasize the importance of syndicated loans in sectoral financing processes and point out the importance of banks taking international financing conditions into account in sectoral loan distribution policies.