Liquidity surplus alone doesn’t boost broad credit growth, economic activity holds greater influence: StanChart report
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Standard Chartered's report indicates that economic activity, rather than liquidity surplus, primarily drives credit growth. While excess liquidity might boost unsecured personal loans, it doesn't guarantee broad credit expansion. Historically, overall credit as a share of GDP declines during high liquidity periods, suggesting real credit demand is tied to economic activity. What's Your Reaction?
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