To keep the amount of loan in the optimum level is known as credit control. In case of individual the person himself maintain the level of optimal position, incase of institutions the manager or owner of the institutions maintain the optimum level of loan but it is responsibility of govt. to maintain the optimal level of loan in the economy. As a representative of govt. central bank do this job of credit control.
Scholars view about credit control:
K Dewett, “The control of credit means the regulation and control of bank advances.”
P.H. Collin, “Credit control means checking that customers pay on tie and do not exceed their credit limits.”
So, the methods or techniques followed by central bank to control the loan supply or supply of money in the optimal level or to control the loan disbursement capacity of bank or financial institutions is known as credit control.
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