Emergency Credit

A A A

DEFINITION

A loan given by a federal reserve bank to a non-bank institution or organization when no other source of credit is available. The organization in need must examine all other potential sources of funds first. Most of these loans are longer-term, usually more than 30 days.

INVESTOPEDIA EXPLAINS

The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) amended the Federal Reserve Act to expand the scope of bailouts for federally-insured depository institutions.



RELATED TERMS
  1. Federal Reserve Bank

    The central bank of the United States and the most powerful financial institution ...
  2. Credit Money

    Any future monetary claim against an individual that can be used to buy goods ...
  3. Financial Stability Plan (FSP)

    A plan unveiled by the Obama administration in April, 2009, that was designed ...
  4. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank failure. The ...
  5. Federal Funds

    Excess reserves that commercial banks deposit at regional Federal Reserve banks. ...
  6. Treasury Direct

    The online market where investors can purchase federal government securities ...
  7. Overnight Rate

    The interest rate at which a depository institution lends immediately available ...
  8. Helicopter Drop

    A hypothetical, unconventional tool of monetary policy that involves printing ...
  9. Discount Rate

    The interest rate charged to commercial banks and other depository institutions ...
  10. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at ...
Related Articles
  1. Get To Know The Major Central Banks
    Forex Education

    Get To Know The Major Central Banks

  2. Top 6 U.S. Government Financial Bailouts
    Insurance

    Top 6 U.S. Government Financial Bailouts

  3. The Treasury And The Federal Reserve
    Bonds & Fixed Income

    The Treasury And The Federal Reserve

  4. A Nightmare On Wall Street
    Insurance

    A Nightmare On Wall Street

  5. The 2007-08 Financial Crisis In Review
    Mutual Funds & ETFs

    The 2007-08 Financial Crisis In Review

  6. The Rate Rise Timeline to Watch for ...
    Economics

    The Rate Rise Timeline to Watch for ...

  7. Questions For U.S. Stock ETF Bulls
    Economics

    Questions For U.S. Stock ETF Bulls

  8. The Taylor Rule: An Economic Model For ...
    Economics

    The Taylor Rule: An Economic Model For ...

  9. This is What the Fed’s Monetary Policy ...
    Economics

    This is What the Fed’s Monetary Policy ...

  10. What to do When the Market Doesn’t Believe ...
    Investing

    What to do When the Market Doesn’t Believe ...

comments powered by Disqus
Hot Definitions
  1. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  2. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  3. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  4. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  5. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  6. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
Trading Center