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Issue:

Business

 

Written by:

Barbara S

 

Date added:

October 26, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

8 / 2125

 

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9716 times

 

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The change in the monetary policy in 1981 introduced a new competitive environment for banks. This culminated in the cancellation of the cartel agreement between banks with effect from 28 February 1983, when the ROCO (Register of Co-operation) agreement was cancelled. Over the next few years the balance sheet of the banking sector expanded rapidly, the introduction of competition between banks in the early 1980s is why some banks ran into difficulty by the mid 1980s...
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Over the next few years the balance sheet of the banking sector expanded rapidly, the introduction of competition between banks in the early 1980s is why some banks ran into difficulty by the mid 1980s. A further effect of the replacement of credit ceilings with market-oriented monetary policy was that interest rates became more volatile than before and not all banks had the necessary internal systems in place to deal with the increased volatility...
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General issues of this essay:
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