The Limitations On The Powers Of Commercial Banks To Create Credits or Money.

1. The cash deposit ratio, if increased by the central bank, decreases the money with the commercial banks, which means they have little to lend out and vice versa.2. The readiness of other banks to grant credits to avoid cash drain on a particular bank.3. The willingness of members of the public to borrow.4. The willingness of banks to lend to the public.5. The ability of borrowers to present acceptable collateral securities to banks.6. The amount of cash available to banks.7. Other actions of the central bank in regulating the volume of money in circulation, for example, the use of bank rate, open market operation,special directives etc.8. The willingness or unwillingness of customers to deposit their money in the banks.9. Availability of Productive investments which will stimulate members of the public to demand for loans or non-availability of productive investments which may damper the interest of members of the public to demand for more loans and overdrafts.10. The rate of interest charged by commercial banks on loans, granted to members of the public.