Objective
of Credit Control
Bank is an important part of our
economic and the entire bank always prefer to earn profit. For this, banks
accept saving or different deposit on a fix interest rate from the public side
and give loan to create credit on other side. Give a loan or create credit is
an important part of any bank. But if flow of money increase in the market then
price level increase automatically then we face an inflation in the economic.
So it’s become the responsibility of the Central bank to control the flow of
money and avoid inflation or deflation situation.
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| objective of credit control साख का नियन्त्रण |
Motive or objectives of credit
control (साख नियन्त्रण) –
ü Control
the domestic price level
– one of the important points is to control the domestic price level and also
avoid the inflation or deflation situation. These things influence our economic
growth.
ü Manage
different Business Cycles
– when there is a positive environment, we increase our jobs, productivity or
price level etc and vise-versa also in negative environment. Central bank
adopts such a policy in positive environment, we control the credit to avoid
the inflation or in negative environment, we adopt a positive policy to spread
the credit creation with liberal policy for investment, to create jobs or
motivate the economic.
ü Manage
foreign exchange – if
there is a continue change in the domestic price level, these things effect our
export & import. Any increase in price level our export decrease
and import increase, this situation decrease the value or demand of
our currency and vise versa also.
ü Balance
the Growth & Stability
– every economic have a dream that Growth with Stability. In the condition,
there is a full employment, there is no pressure of fiscal or inflation
sides. Stable price and foreign exchange is also an important.
ü Fulfill
business requirement
– central bank play an important role to fulfill the business requirement. Our
traders or industries require credit or fund to meet their goal and then we
require more funds for more growth or expand our business. These things
also help the central bank to avoid or control the deficit in foreign trade
also.
