asked the Minister for Finance whether the Central Bank or the commercial banks have been advised on the question of the restriction of credit; and, if so, whether he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Restriction of Credit.
I am not aware of any advice tendered to the Central Bank on the question of the restriction of credit. In its last report the Central Bank, in dealing with the need for curbing inflation, mentioned that it was of great importance that the expansion of bank credit should not be aggravated by the granting of accommodation for speculative or other less necessary purposes, however apparently well secured. I also understand that on the occasion of the recent issue of Exchequer Bonds the commercial banks were advised not to grant accommodation to intending subscribers as it was desired that subscriptions should be met out of savings. The commercial banks have representatives on the board of the Central Bank who are in a position to be continuously aware of the views of the board on this subject.