Tag Archives | Credit Control

Selective Credit Controls and Controlling Inflation | Banking

Selective credit control refers to qualitative method of credit control by the central bank. The method aims, unlike general or quantitative methods, at the regulation of credit taken for specific purposes or branches of economic activity. It aims at encouraging good credit, i.e., development credit while at the same time discouraging bad credit, i.e., speculative credit. The techniques of selective [...]

By |2017-01-13T05:55:16+05:30January 13, 2017|Inflation|Comments Off on Selective Credit Controls and Controlling Inflation | Banking

Methods of Credit Control by Central Bank | Banking

The following points highlight the two main methods of credit control by central bank. The methods are: 1. Quantitative Methods 2. Qualitative or Selective Methods of Credit Control. 1. Quantitative Methods: The following are the quantitative methods of credit control: 1. Variation in the Bank Rate: The bank rate is the minimum official rate at which the central bank rediscounts [...]

By |2017-01-13T05:55:15+05:30January 13, 2017|Central Bank|Comments Off on Methods of Credit Control by Central Bank | Banking
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