Credit Policy Skirts Basic Issue

EPW Research Foundation Credit Policy Skirts Basic Issue With the latest monetary policy announcement confining itself to the essentials of the stabilisation and structural adjustment programme, the mismatch between an abundance of liquidity in the system and industry craving for funds for investment has remained unaddressed. Money market developments, after the credit policy announcement particularly, have once again thrown into sharp focus the narrow groove in which the banking system has got stuck and the rigidity in the operations of banks and financial institutions encouraged by the limited perspective of financial sector reforms.