Banking and Financial Terms: MORAL SUASION : Moral suasion is - TopicsExpress

Banking and Financial Terms: MORAL SUASION : Moral suasion is an instrument of monetary regulation whereby the Central Bank seeks to influence the volume and direction of flow of credit by appeal or persuasion to comply voluntarily with its various guidelines to the banks. Moral suasion may be used in the form of advice on the desirable expansion of bank credit, loan priorities or maintenance of liquid assets etc.

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