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.