credit growth

The Bank of England this week cited lack of credit growth as one of the main reasons for its gloomy economic forecast.

A notable development over the course of 2004 has been a turnaround in the housing market and a slowing in household credit growth.

Imagine the difference it might have made to Ireland and Iceland, say, if supervisors there had resisted banks' eye-watering credit growth.

The Bank for International Settlements has long warned of the dangers of unrestrained credit growth and asset price inflation.

Goldman Sachs economist Yu Song said the slowdown in money supply and credit growth is alarming.

But hopes for a strong private-sector recovery are undermined by the data on credit growth.

Of these, rapid credit growth is the most important leading indicator of financial instability, followed by an asset price bubble.

Little was done to cool credit growth, or to halt the fatal reliance on foreign capital.

Under this new policy, credit growth would be controlled via the price rather the quantity of money.

"China has expanded credit rapidly. As credit growth is moderated there is a risk that China could turn down again, " he said.

Experience shows that higher capital requirements do dent credit growth, at least in the short term.

If the Bank of England stops QE entirely, the credit-growth rate could collapse.

The PBOC is widely expected to hike banks' reserve requirements further to clamp down on credit growth.

That is one reason credit growth has continued to exceed official targets, fuelling the inflation that worries Beijing.

The recent rate of credit growth in China has exceeded that of the US in the years prior to the Lehman bust.

Non-performing loans are modest, but years of aggressive credit growth will throw up more.

The constraint on credit growth will still be the amount that banks are able to lend rather than the rates they charge.

It was excess leverage and credit growth that brought the global economy to its knees.

" In the money supply and credit growth more tight situations, " there will always be good formidable.

Credit growth is continuing to rebound strongly, and India remains one of the world's bright spots for investment.

But as new regulation and an overall slowdown of credit growth help shrink speculative debt, economic growth will become more sustainable.

It has sought recently to slow down credit growth by raising bank reserve requirements and paring credit growth targets.

To be sure, credit growth occasionally gets out of hand, as it did last year under government orders to prop up the economy.

Zhou reiterated government goals of "moderate" credit growth and stronger liquidity management at a forum in Beijing today.

Specifically, the next year, money supply and credit growth were to change.

Official bank lending rates are only one tool used to manipulate credit growth.

As credit growth slows, so the profits of financial institutions as a percentage of total corporate profits will fall.

When house prices merely cease rising, the rate of credit growth normally slows, inducing householders to save more and spend less.

With output so far below potential and credit growth stagnant, there is little chance of sustained inflation.

He reckons that nominal wage growth has hit 18% a year, domestic demand is rising by as much as 25% and credit growth is some 30-40%.

Central banks in emerging markets have long used tools of this kind to control credit growth and capital flows.

Having presided over a mammoth $1, 100bn of new loans in the first half of the year, Beijing is calling time on Chinese credit growth.

Rampant credit growth is not a menace, in itself, as growth in deposits has more than kept pace.

Low nominal and real interest rates encourage robust credit growth, a worldwide shift into risky assets and compression of risk spreads.

Mr Yang says that the banks' credit growth had been "very modest" .

More recently, a rise in the MCI indicates a tightening of monetary conditions, reflecting primarily a sharp slowdown in credit growth.

Broad measures of money and credit growth are stagnant or shrinking in all three places.

Credit growth is close to zero, points out Joachim Scheide of the Institute for the World Economy in Kiel.

As high inflation takes hold, the credit growth rate is finally brought below nominal GDP growth rate, which implies tightening.

Combination of monetary and credit growth is slowing, inflationary pressures show an upward trend under control.

Lower interest rates would simply add to the problem, generating higher credit growth, inflation and asset prices.

If credit growth became too great, China would face more inflation in the short term and possible excess capacity in the longer term.

Such measures have proved effective in addressing credit growth and property booms, the root cause of most crises.

If so, then this could make copper demand doubly sensitive to Chinese government efforts to slow credit growth.

Therefore, we expect monetary policy to remain prudent with money and credit growth kept below PBOC's targets.

Second, liquidity conditions remain ample, as evidenced by April's still strong pace of credit growth.

Fragile consumer sentiment, a rise in the household savings rate to 10% and weakening credit growth are other concerns Westpac cites.

Falling bond issuance may indicate that net credit growth has shrunk, even where bank lending has risen.

Either way, those enviable levels of credit growth are likely to taper off soon.

The fatal weakness of the old model was its reliance on rapid credit growth.

The principal goals of reform must, instead, be to make the economy less vulnerable to shocks and to curb excessive credit growth in future.

Second, China's fixed exchange rate makes it hard to keep credit growth under control.

In 2003-08, the average annual rate of credit growth was just one percentage point lower than during the credit bubble of 1998-2003.

However, signs that retail sales, credit growth and the property market are cooling may push any further hikes further into the future.

Money and credit growth unexpectedly spurted in September.

Next, credit growth needs to be controlled but not so tightly as to choke growth.

Moderately faster credit growth should perk up the economy in the second half of 2012.

The Fed's old M3 yardstick of credit growth which includes repo monetization would likely similarly decline.

Under the post-Bretton Woods dollar standard, credit growth powered economic growth.

Rapid credit growth in the first few weeks of January will only add to inflationary concerns.

Private credit growth is falling across most economies.

Loan quotas, meanwhile, imply that credit growth will undershoot 2007 but was still robust.

That indicates credit growth will likely slow in the coming months.

"The big risk is that infrastructure spending could actually be stronger this year even if credit growth slows, " says Mr Cavey.

Meanwhile, credit growth has been reined in, with the growth in outstanding credit now at about 15 per cent.

It is based on the size of current-account balances, budget deficits, credit growth and inflation.

In recent years, it is real, the government credit growth of real estate mortgage loan to take control.

Many commentators now feel he paid too little attention to credit growth and asset prices.

During the past five years credit growth has run at 2. 4 times nominal gross domestic product.

Interest rates are beginning to move up and credit growth is slowing, casting a shadow on Hong Kong asset prices.

That has been interpreted to mean credit growth of perhaps only 14% in 2011.

Credit growth has been running above 16 per cent.

If credit growth roars on, the Chinese central bank will have a lot of trouble controlling inflation.

At one stage, the annualised increase in credit growth in China hit 170%, almost certainly the biggest such surge there has ever been.

Monetary policy will focus on bringing down credit growth to a normal rate of around 17%, from last year's excessive 32%.

"The leverage simply lies in China's credit growth. "

Credit growth was surprisingly high, and the same was true of the broad money supply, M2, which grew at a record rate relative to GDP.

Citigroup economist Shen Minggao said last year's fast credit growth and the export rebound have tempered the impact of policy changes.

Fuelled by rapid credit growth in the lead-up to last year's presidential election, Brazil's economy expanded 7. 5 per cent in 2010.

In America overall credit growth will slow to below 1%, down from a post-war annual average of 9%.

Strauss-Kahn referred to credit growth as a sign that financial activity was beginning to pick up

The major banks have reported credit growth of more than 20 per cent last year.

But credit growth is also slowing in Hong Kong and rates are moving up.

Trust companies are growing fast, fuelling fears of excessive credit growth

The Impact of Capital Adequacy Requirements on Commercial Bank's Credit Growth