Central Bank Lending
/ˈsɛntrəl bæŋk ˈlɛndɪŋ/
Definitions
- (n.) The provision of funds by a central bank to commercial banks or financial institutions, typically to regulate liquidity and stabilize the banking system.
The central bank lending increased during the financial crisis to support struggling banks.
Forms
- central bank lending
- central bank lendings
Related terms
See also
Commentary
Central bank lending primarily functions as a monetary policy tool and a lender of last resort mechanism.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.