Cover IMF Working Papers
Buy Book in Print
Bank-By-Bank Credit Ceilings: Issues and Experiences
Author:
Ms. Mitra Farahbaksh
Search for other papers by Ms. Mitra Farahbaksh in
Current site
Google Scholar Close
and
Mr. Gabriel Sensenbrenner
Search for other papers by Mr. Gabriel Sensenbrenner in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 1996: Issue 063
Language:
English
Publication Date:
01 Jun 1996
DOI:
https://doi.org/10.5089/9781451848373.001
ISBN:
9781451848373
ISSN:
1018-5941
Pages:
32
Keywords:
WP; credit ceiling; bank; ceiling; break; rediscount quota; outstanding share; credit right; credit authorization; noncompliant bank; credit portfolio; credit financing; credit facility; credit growth; foreign currency; credit supply; Credit ceilings; Credit; Bank credit; Reserve requirements; Commercial banks; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.9 MB) Download Epub
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.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund