'As always, BB will in FY20 be closely monitoring both magnitude and direction of
credit flows to diverse sectors and subsectors of the economy and continue promotion and support for inclusive, adequate
credit flows to under-served sectors or niches promising for job creation in productive pursuits,' he added.
Mumbai: RBI Governor Shaktikanta Das met more state-run bankers to discuss the issues related to relaxing the prompt corrective action (PCA) framework, liquidity and
credit flows to MSMEs, said bankers.
The sources said the government's priority at this juncture is to boost
credit flows to small and medium enterprises (SMEs) and non-bank finance companies (NBFC).
An analyst shared as the pace of the economic activity grows, it stimulates
credit flows and raises growth.
Further statistics reveal that
credit flows to the realty and construction market significantly grew in the period from January to June, with Q1 amounting to AED2.3 billion during Q1 and an increase to AED14.2 billion in Q2.
Credit flows to the realty and construction market significantly grew in the period from January through June, amounting to $626m (AED2.3bn) during Q1, and surging to $3.8bn (AED14.2bn) in Q2, the data revealed.
The rationale for this distinction is that
credit flows are a stimulus to growth due to more spending, different from the traditional reallocation effect of more financial development.
Summary: but changing composition of
credit flows poses new challenges
* Markus Brunnermeier, Princeton University and NBER, and Yuliy Sannikov, Princeton University, "International
Credit Flows, Pecuniary Externalities, and Capital Controls"
It is believed that the scheme will allow borrowers and lending banks to increase
credit flows to the productive sectors of the economy.
She listed four priority requirements to jump-start growth in Europe: restoring
credit flows, supporting demand, reducing public and private debt levels, and fostering the emergence of growth-friendly labour and product markets.