Bank-By-Bank Credit Ceilings : Issues and Experiences /

Many central banks have abandoned credit ceilings in favor of monetary control frameworks based on indirect instruments. In the long run, ceilings limited competition, hampered the development of a money market, and caused disintermediation. Despite the many distortions associated with the use of cr...

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Detalhes bibliográficos
Autor principal: Farahbaksh, Mitra
Outros Autores: Sensenbrenner, Gabriel
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 1996.
coleção:IMF Working Papers; Working Paper ; No. 1996/063
Acesso em linha:Full text available on IMF
Descrição
Resumo:Many central banks have abandoned credit ceilings in favor of monetary control frameworks based on indirect instruments. In the long run, ceilings limited competition, hampered the development of a money market, and caused disintermediation. Despite the many distortions associated with the use of credit ceilings, some countries continue to employ them, particularly during the transitional period before full reliance on indirect monetary instruments. The paper argues that the careful attention to design can help reduce distortions typically associated with the use of credit ceilings. It identifies a series of principles that may be followed in designing a system that can minimize those distortions.
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Descrição Física:1 online resource (32 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students