Author: Dmitry V. Burakov

Abstract. The article discusses the management of cyclical dynamics of the credit sphere. Considering the fact that conventional methods of monetary policy proved to be vulnerable to the process of accumulation and realization of risk in the credit sector, we aim to study heterodox methods of credit market regulation – administrative (direct) methods of control over fluctuations on the credit market. In particular, based on the analysis of credit limits used in the Socialist Republic of Vietnam, we come to conclusion about comparative effectiveness of this method in curbing excessive amplitude of the credit cycle. However, the price of using this method may be connected with reduction in the rate of economic growth and a shift in the accumulation of risk to other areas of the credit market.

Keywords: Credit risk, credit cycle, lending limits, credit management