Definition: Moral Suasion refers to a method adopted by the central bank to persuade or convince the commercial banks to advance credit in accordance with the directives of the central bank in the economic interest of the country.
Moral suasion implies persuading the commercial banks by the Central Bank to cooperate with it in following a proper credit policy more rigorously.
Moral suasion implies persuading the commercial banks by the Central Bank to cooperate with it in following a proper credit policy more rigorously.
