What are some limitations to Credit Creation in Commercial Banks?
Some of the limitations of credit creation in commercial banks are:
- Amount of Cash
- Cash Reserve Ratio
- Banking habit of the people
- Nature of Business Condition in the Economy
- Leakages in Credit Creation
- Sound Security
- Liquidity Prefrence or Demand for Money
- Monetary Policy of the Central Bank
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Somtochukwu
Visionary Leader and Development Economist in Nigeria. CEO at Bufiredd Economic Consults Ltd
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