Monetary Policy 2

Beschreibung

Mindmap am Monetary Policy 2, erstellt von Amelia Edreena A am 13/02/2015.
Amelia Edreena A
Mindmap von Amelia Edreena A, aktualisiert more than 1 year ago
Amelia Edreena A
Erstellt von Amelia Edreena A vor fast 10 Jahre
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Zusammenfassung der Ressource

Monetary Policy 2
  1. Qualitative Expansionary Monetary Policy
    1. Selective Credit Controls
      1. Reduce control on credit mortgage
        1. Definition of Credit Mortgage: Control of loans on buying property through mortgage.
          1. The central bank imposes relaxed mortgage conditions to encourage the public to buy properties and encourage a mortgage credit creation process.
          2. Reduce Control on Margin Requirement
            1. Control of margin requirements limit the volume of loans for purchase shares.
              1. Lower margin requirements will increase the ability of people to buy shares through loan.
              2. Reduce Control on Credit Installment
                1. Credit instalments affect the purchasing of goods through loan or installment
                  1. Relaxed credit instalments terms such as minimum reduction of advance payments and the extension of repayment period will promote the activities of credit purchases
                  2. Special Directive
                    1. Central bank will instruct commercial banks to increase the volume of loans given to the public.
                      1. The central bank will also influence commercial banks to loosen their lending policy, such as the need for collateral security, guarantors and other measures, which will encourage borrowing.
                    2. Moral Persuasion
                      1. Carried out by central bank through direct meetings with banks.
                        1. Central bank will explain the economic and financial state of the country and ask the commercial banks to take certain steps to overcome any financial and economic problems faced.
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