What are some limitations to Credit Creation in Commercial Banks?

Somtochukwu

Some of the limitations of credit creation in commercial banks are:

  1. Amount of Cash
  2. Cash Reserve Ratio
  3. Banking habit of the people
  4. Nature of Business Condition in the Economy
  5. Leakages in Credit Creation
  6. Sound Security
  7. Liquidity Prefrence or Demand for Money
  8. Monetary Policy of the Central Bank
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