Examination of the Relationship between Non- performing Loans and Macro-economic Variables in Banking Sector: The Case of Turkey (2003-2020)

Although loans are a profitable product for banks, they inherently contain an element of risk. The financial sector in terms the fact that loan transferred to economy is not paid due time and becomes problematic, firstly affecting bank made then other banks. On hand, it affects real reducing amount be increasing cost loan. In words, existence control non-performing very important activities both banking sector. this study, relations between loans, effective exchange rate, inflation economic growth interest rates were analyzed by ARDL analysis method. It covers periods from 2003; Q1 2020; Q4. As result, has been determined variables than rate affect loans.