credit controls

credit controls

  1. 1the regulation of borrowing from the FINANCIAL SYSTEM as part of MONETARY POLICY. OPEN MARKET

    OPERATIONS are one general means of limiting the expansion of credit. A more selective form of control is consumer INSTALMENT CREDIT regulation (hire urchase). Under this arrangement, the purchase of certain goods is regulated by the authorities stipulating the minimum down-payment and the maximum period of repayment.

  2. the control that a firm exercises over its TRADE DEBTORS in order to ensure that customers pay their DEBTS promptly and to minimize the risk of bad debts. The purpose of credit control is to minimize the funds that a firm has to tie up in debtors, so improving profitability and LIQUIDITY.
See FACTORING, WORKING CAPITAL.
References in periodicals archive ?
Forecasters expect economic growth to cool later this year as credit controls take hold, depressing investment.
If post-war British history is a guide, credit controls are less effective than traditional monetary policy in controlling inflation, but they are better suited to influencing bank lending and other variables emerging as financial stability objectives.
Liu Mingkang, chairman of the China Banking Regulatory Commission, said that businesses were looking at alternate ways to raise cash, as banks were curtailing lending because of tough credit controls by the government.
Today, fewer people have money due to stricter credit controls by banks, so fewer are buying goods and services.
The rating also incorporates the appointment of experienced professionals at the senior management level, focus on realigning the strategic direction of the bank, renewed efforts on recoveries and improving credit controls.
He blames the decision by former US Federal Reserve chief Alan Greenspan, the key US policy maker, to slash interest rates after the horrors of 9/11 in 2001 and keep them down, saying he completely failed to spot the housing bubble, coupled with lax credit controls which gave money to too many people who couldn't possibly repay it and the fact that stock market are "essentially a game played between sophisticates and boobs".
This largely consisted of implementing tougher credit controls and assessing customer and supplier risk.
As China revealed it will impose credit controls, hitting demand for metals, Anglo American lost 4.
In February, Mitsubishi Motors raised its group net loss estimate to 72 billion yen from an earlier projected 11 billion yen for the business year to March 31 due to a slump in sales in North America and financial woes resulting from loose credit controls at its North American finance unit.
From 1992 onwards, Bank Negara Malaysia (BNM) attempted on several occasions to use currency revaluations, direct credit controls, interest rates, moral suasion, and limited capital controls to tighten monetary policy.
Field level security was added for the credit controls in version 3.
During the explosive growth in lending in New England during the 1980s, credit controls at some institutions had become lax.

Full browser ?