Bank Lending to Productive SME's

Nigeria is taking an innovative approach to encourage their banks to widen their low interest lending to the real economy (producers of goods and services).
They are refunding money to the commercial banks from the cash reserve ratio held at the central bank in the equivalent amount of credit they (the comm banks) provide to companies.
This would prevent the problems of over-regulation of private enterprise or government picking "winners and losers" by lending directly, as well as the fiscal issue and fear of political interference in the private sector.
Why can't we do something like this? Why can't we raise their reserve ratio and refund what they lend to small producers at low rates? They are making record profits off Jamaicans!
-RG

In response to:
Nigeria affirms bilaterial cooperation with Jamaica

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