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Allocation of Bank Credit

  • Y. C. Jao

Abstract

Of the many functions of commercial banks it is the provision of credit that has the most direct bearing on the real growth of the economy. The banking system acts as the intermediary which channels financial resources from savers to entrepreneurs who organise the productive processes that add to the real output. But the banks’ role is not limited to the production side only. Retail merchants for example are no less in need of bank credit to finance the distribution of final goods Similarly consumers require bank assistance in acquiring durable goods on hire-purchase basis. In a credit economy the banks are involved in every stage of the circular flow of goods and services, from their first production through distribution to their final consumption.

Keywords

Banking Sector Bank Loan Bank Credit Trade Sector Lending Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes and References

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Copyright information

© Y. C. Jao 1974

Authors and Affiliations

  • Y. C. Jao
    • 1
  1. 1.University of Hong kongChina

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