Original scientific paper
CREDIT POLICY OF BUSINESS BANKS IN THE FUNCTION OF A MORE EFFICIENT MULTIPLICATION OF CREDITS AND DEPOSITS
Antun Jurman
Abstract
The paper defines the term and analyses the main features of credit and deposit multiplication as a process in which banks create ulterior deposits by granting credits to their deponents. Good knowledge of relevant external and internal factors of multiplication, the most important being the credit policy, is the basis for the determination and execution of an efficient multiplication in any bank. In the last couple of years, the placement policy of Croatian banks has mainly been oriented to granting credits for the population. In that way the banks have successfully realized their short-term goals since they raised the quality of their assets and realized an extremely interesting profit while regularly keeping their liquidity. The author suggests changes in the credit policy in the sense of a stronger crediting of companies in order to increase the positive effects of credit and deposit multiplication, i.e. the strengthening of the financial and crediting potential and an additional profit, which should be long-term goals of the business policy of Croatian banks
Keywords
deposit; credit; credit and deposit multiplication; credit policy
Hrčak ID:
38134
URI
Publication date:
15.6.2008.
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