Credit Control

Credit Control The 1110stimportant function of the central bank i the cuntrol credit. The control of credit means the regulation and control of bank advances. It goc, without saying that the nature and volume of varices have a vital bearing on the state of the...

CONTROL OF CREDIT

CONTROL OF CREDIT Objectives of Credit Control A central bank contruls credit with the following objects in view: (iI) to safeguard It gokl re ‘C\’C g.lIn~t intcrnal and external dram , [II) to maintain qahillt) of I tell I nee (c) to achieve stahilit) of...

Bankers Bank

Bankers Bank Broadly speaking, the central hank ad:, ,1\ a banker’s bank in three capacitors. (I) A~ the custodian of thc cash re. curve of the commercial hanks; (ii) as the lender of I~ t resort and (iii) as a bank of central clearance, cattle mcnt and...

Banker of the State

Banker of the State Thc second important function of a central bank is to ad as a banker to the government. Alll till’ balances HI’the gm CI’IlIIll’lIt IIf the cuuntry; arc kept “ilh thc ccutral hunk. On these balances, ; usually the...

Note-Issuing Agency

Note-Issuing Agency In the early periods of banking development, almost every bank enjoyed the right of issuing notes, This led to frequent troubles. Notes were over-issued and the resulting inflation disorganized the cu.rrency sys- tern and brought other serious...

FUNCTIONS OF CENTRAL BANKS

FUNCTIONS OF CENTRAL BANKS What functions are more characteristically the central banking functions has been widely discussed question among economists. Hawtrey thinks that it should primarily be the “lender of last resort.” Vera Smith stresses the...