We examine the role of the international credit channel in Turkey over 2005-2013.We show that larger, more capitalised banks with higher non-core liabilities increasecredit supply when capital inflows are higher. This result is stronger for domestic banksrelative to foreign banks and survives during the crisis period of post 2008, when foreignbanks in general stop lending in emerging markets and retreat to their home countries.By decomposing capital inflows into bank and non-bank flows, we show the importanceof domestic banks' external borrowing for domestic credit growth.