Table A1: Credit Guidelines Aggregate Allocative Ratios 13 May 1965 During the 9 months ending In considering applications for credit, Specific aim, the average level, over the year 21st Dec. 1965 the aggregate the AB should give main priority to 1965 as a whole, of the ratio of the AB’s net The advice on credit policy is amount of credit extended applications related to purposes of a external assets together with deposits in the intended as a contribution by the AB – comprising bills, productive nature, and within this CB to their liabilities in respect of current and towards the restraint of loans and advances – should category, to purposes directly related to deposit accounts within the state should not excessive growth in domestic not expand, in relation to the expansion of exports of goods and be lower than 22% expenditure and as an their resources within the services. encouragement of the direction State, as rapidly as during Each bank should consult with the Central of credit towards productive the year ended 31st March Bank. purposes. 1965 26 August 1965 During the year ending 31st In considering applications for credit, The ratio of the total amount of the AB’s net March the aggregate the Associated Banks should give main external assets together with deposits in the amount of bills, loans and priority to applications related to CB less Exchequer Bills rediscounted to their advances should not expand purposes of a productive nature and total liabilities in respect of current and as rapidly as during the year within this category to purposes directly deposit accounts within the state (described ended 31st March 1965 related to the expansion of exports of as the Central Bank Ratio) at the end of March goods and services. 1966, should not be lower than 20%. 3 March 1966 In this advice, the word In considering applications for credit, The minimum Central Bank Ratio should not There is a continuing need for credit comprises bills, loans, the Associated Banks should continue be lower than 20%. moderation in the growth of advances and investments of to give priority to purposes of a credit, as a contribution to the the AB within the State, productive nature and, within this restraint of expenditure in the including in the case of bills, category, to purposes directly related to economy as a whole, and for Exchequer Bills rediscounted the expansion of exports of goods and direction of available credit with the Central Bank. services. mainly towards productive purposes. The aggregate amount of Consultations between the CB and the credit should not increase by individual Associated Banks on the
Table A1: Credit Guidelines Aggregate Allocative Ratios 13 May 1965 The advice on credit policy is intended as a contribution towards the restraint of excessive growth in domestic expenditure and as an encouragement of the direction of credit towards productive purposes. During the 9 months ending 21st Dec. 1965 the aggregate amount of credit extended by the AB – comprising bills, loans and advances – should not expand, in relation to their resources within the State, as rapidly as during the year ended 31st March 1965 In considering applications for credit, the AB should give main priority to applications related to purposes of a productive nature, and within this category, to purposes directly related to the expansion of exports of goods and services. Specific aim, the average level, over the year 1965 as a whole, of the ratio of the AB’s net external assets together with deposits in the CB to their liabilities in respect of current and deposit accounts within the state should not be lower than 22% Each bank should consult with the Central Bank. 26 August 1965 During the year ending 31st March the aggregate amount of bills, loans and advances should not expand as rapidly as during the year ended 31st March 1965 In considering applications for credit, the Associated Banks should give main priority to applications related to purposes of a productive nature and within this category to purposes directly related to the expansion of exports of goods and services. The ratio of the total amount of the AB’s net external assets together with deposits in the CB less Exchequer Bills rediscounted to their total liabilities in respect of current and deposit accounts within the state (described as the Central Bank Ratio) at the end of March 1966, should not be lower than 20%. 3 March 1966 There is a continuing need for moderation in the growth of credit, as a contribution to the restraint of expenditure in the economy as a whole, and for direction of available credit mainly towards productive purposes. In this advice, the word credit comprises bills, loans, advances and investments of the AB within the State, including in the case of bills, Exchequer Bills rediscounted with the Central Bank. The aggregate amount of credit should not increase by In considering applications for credit, the Associated Banks should continue to give priority to purposes of a productive nature and, within this category, to purposes directly related to the expansion of exports of goods and services. Consultations between the CB and the individual Associated Banks on the The minimum Central Bank Ratio should not be lower than 20%.