Definition of Credit Mortgage: Control of
loans on buying property through
mortgage.
The central bank imposes relaxed
mortgage conditions to encourage the
public to buy properties and encourage a
mortgage credit creation process.
Reduce Control on Margin
Requirement
Control of margin requirements
limit the volume of loans for
purchase shares.
Lower margin requirements will
increase the ability of people to buy
shares through loan.
Reduce Control on Credit
Installment
Credit instalments affect the
purchasing of goods through loan
or installment
Relaxed credit instalments terms
such as minimum reduction of
advance payments and the
extension of repayment period will
promote the activities of credit
purchases
Special Directive
Central bank will instruct commercial
banks to increase the volume of loans
given to the public.
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.
Moral Persuasion
Carried out by central bank
through direct meetings with
banks.
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.