The Effect Of The Pandemic On Consumer Loans And Credit Card Use: The Case Of Turkey (2017-2021) And An Evaluation From Institutional Economics Perspective

Abstract

The consumer loan application, which enables the individual to obtain the goods or services they want to buy by borrowing from the bank, has been used since 1928 in the world and 1988 in Turkey, and credit cards have been actively used by consumers since the 1950s. Both consumer loans and credit cards provide economic mobility to individuals who cannot meet their cash needs by their own means. In this study, the effect of the pandemic announced in March 2020 on consumer loans and credit card amounts in Turkey was examined. The study is based on the hypotheses that the pandemic has statistically significantly increased consumer loan and credit card amounts. The hypotheses of the study were confirmed as a result of the analyzes carried out by the SPSS 26.0 package program Independent T-Test, taking into account the 2017 – 2021 loan and credit card amounts of the BRSA. Post-pandemic consumer loan amounts and credit card amounts showed statistically significant differences compared to pre-pandemic. The analyzes were tried to be evaluated from the point of view of Institutional Economics. It has been commented that if the increased credit and credit card amounts during the pandemic period cannot be paid by the consumers on the due dates, the banking sector may experience a credit contraction, while individual borrowing that does not create added value will adversely affect the economic indicators in the long run and there may be a cyclical fluctuation.