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 ?
creation of organisational structure (defining company, Company codes, Business areas, Functional areas, Credit control, Assignment of company codes to credit controls),
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.
Chief executive Alex Baldock said the business, who are promoted by Myleene Klass, benefited from switching to purely digital, together with tighter cost and credit controls.
Discussion between representatives of credit institutions and Central Bank Governor Panicos Demetriades took place "in a climate of mutual understanding and the need for a gradual reduction of loan interest rates as well as further action with a view of reducing restructuring costs in the immediate future was recognized by all." With the e1/410 bln bailout programme, austerity measures and harsh credit controls in place, money supply in the market has dwindled hurting all commercial activity, while fresh lending has dried up and individuals as well as companies have nowhere else to turn to for funding.
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. Going forward, continued attention on these areas is expected to assist the bank in achieving sustainable growth.
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 4.6 per cent to 1173p, Xstrata fell 4.2 per cent to 660p and BHP Billiton fell four per cent to 458.5p.
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.
The group said it had reviewed the credit controls GMAC-RFC had employed when agreeing the mortgages and tested the loan book against its own credit scoring procedures to ensure it was a sound investment.

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