What are the limitations of credit creation?
Commercial Banks though have the power to create credit, their powers are not unlimited. Certain points affect the process of credit creation. They are termed as limitations to credit creation by commercial banks.
Image Credits © Deutsche Bank.
The limitations of credit creation by commercial banks are as follows :-
1. Amount of Deposit
The most
Saturday, 16 July 2011
Limitations of Credit Creation by Commercial Banks
Posted on 08:23 by Unknown
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