Favourable asset-price movements, in turn, improve national fiscal indicators and encourage domestic credit expansion
, exacerbating structural weaknesses in the domestic banking sector.
Directors noted that the banking system remains sound and well supervised and welcomed the steps being taken to preserve financial stability and facilitate domestic credit expansion
. Directors encouraged continued efforts to relax the ceiling on credit rates and to broaden the Financial Institutions Commission oversight to include non?bank financial institutions.
The central bank's tight monetary policy aimed at limiting domestic credit expansion
is working, and a depreciated local currency is offering much help to the country's foreign trade balance.
After keeping the rate unchanged, the central bank said that it could resort to other measures to control domestic credit expansion
Eoe1/4EoOil driven liquidity and domestic credit expansion
gave way to vibrant non-oil sector growth with finance, real estate, construction and services sectors contributing a third of growth, which rose from an average four per cent in the 90s to seven per cent in the boom time,Eoe1/4A[yen] said the report.
In the UAE, the GCC's most diversified and open economy, domestic credit expansion
, high population growth (6 percent), infrastructure spending and the vibrant non-oil sectors (8.2 percent) supported growth (6.8 percent) in 2008.
However, domestic credit expansion
will lead to a decrease in foreign reserves, but may contribute a zero or positive effect on domestic output depending on the degree of wage indexation.
This was expected to leave enough scope for meeting the genuine credit requirements of the private sector within the safe limits of domestic credit expansion
dictated by the need to bring down inflation.
This, together with the marked slowdown in domestic credit expansion
to the public sector, brought the growth of total domestic credit down to 10.6 per cent in 1991, below the target and nearly one-half the average growth rate of the previous ten years.
The growing share of bonds in the financing of the government deficit and the slower domestic credit expansion
to the private sector, partly offset by higher borrowing from abroad, largely explain the deceleration in liquidity growth since mid-1991.
Domestic credit expansion
to the non-state sector will be held to 10 per cent.
Domestic credit expansion
proved so useful that new forms of money were allowed to appear--e.g., credit cards and the rest--and commercial lending practices reached the astonishingly shoddy point exemplified in the Penn Square fiasco.