In November 1967 banks were asked to hold down most of their lending in sterling to the private sector and to borrowers abroad to the level then current. At that time it was not possible to foresee with any reliability the rate of growth in lending directly related to exports which would be needed over the immediately ensuing months; and such lending was therefore not brought within the quantitative limit then requested. Because the prospective growth of exports is now clearer, it has become possible to make an adequately reliable estimate, for the months ahead, of the growth in bank lending directly related to exports. Accordingly, the authorities have concluded that the administration of credit restrictions can both be simplified and made more effective by accommodating all lending directly related to exports, and to the financing of shipbuilding (under the special scheme relating thereto), within a new overall ceiling on bank lending to the private sector and overseas.
Published on
01 June 1968
Credit restriction May 1968