krediidipoliitika

Krediidipoliitika, or credit policy in English, refers to the set of principles and measures adopted by a central bank or monetary authority to influence the availability and cost of credit in an economy. The primary objective of credit policy is to achieve macroeconomic stability, which typically includes controlling inflation, fostering economic growth, and maintaining financial stability.

Central banks employ various tools to implement credit policy. One common tool is setting reserve requirements for commercial banks, which dictates the proportion of deposits that banks must hold in reserve and cannot lend out. By altering these requirements, central banks can influence the amount of money banks have available for lending, thereby affecting credit supply. Another key instrument is the policy interest rate, often referred to as the discount rate or benchmark rate. When the central bank raises this rate, borrowing becomes more expensive for commercial banks, which in turn leads to higher interest rates for consumers and businesses, thus curbing credit demand. Conversely, lowering the policy rate makes credit cheaper, encouraging borrowing and economic activity.

Open market operations, where the central bank buys or sells government securities, also play a crucial role. Purchasing securities injects money into the banking system, increasing liquidity and encouraging lending. Selling securities withdraws money, tightening credit conditions. Furthermore, central banks may engage in qualitative credit controls, such as setting guidelines for lending to specific sectors or industries, or imposing margin requirements on certain types of loans. The overall aim is to manage the flow of credit in a way that supports the central bank's broader economic objectives.