DEFINITION of 'Consumer And Business Lending Initiative'

A plan initiated to aid in the government's goal of correcting the credit crisis by working on the secondary lending markets. Execution of the plan means extensive lending and reorganization of TALF.

BREAKING DOWN 'Consumer And Business Lending Initiative'

Without an effective secondary lending market, a large strain is placed on the major commercial banks, as the two lending mediums work hand in hand. Banks often combine their loans and sell them to the secondary markets, which keeps money flowing freely in the banks allowing them to continue to distribute both personal and business loans. Therefore, without the secondary markets, the lending from commercial banks dries up.

  1. Bond for Bond Lending

    A lending structure used in the Federal Reserve's security lending ...
  2. Lending Facility

    A lending facility is a mechanism used by central banks when ...
  3. Excess Loans

    A loan made by a state chartered or national bank to an individual ...
  4. Lending Freeze

    A period of time when banks either do not have excess money to ...
  5. Warehouse Lending

    Warehouse lending is credit extended by a financial institution ...
  6. Secondary Stock

    A stock that is considered riskier than blue chips because it ...
Related Articles
  1. Tech

    What Goldman Sachs’s Online Lending Means For Banking

    Recently Goldman Sachs has announced its entry into the online lending space. Most commonly known as an investment bank, Goldman’s newest venture may provide insight into the future of online ...
  2. Investing

    Eyeing a Loan? Consider Skipping the Banks

    Peer-to-peer lending platforms, such as Lending Tree, Lending Club and Prosper, offer borrowers newfound leverage. Here's a look.
  3. Investing

    Lending Club to Announce Earnings Oct. 27 (LC, GS)

    Lending Club enters its second year as a publicly trading company, adjusting its risk management to stem losses.
  4. Financial Advisor

    Why Banks Don't Need Your Money to Make Loans

    Contrary to the story told in most economics textbooks, banks don't need your money to make loans, but they do want it to make those loans more profitable.
  5. Tech

    Lending Club, a Square Rival, Soars on Q3 (LC, SQ)

    Non-traditional online lending platforms post better-than-expected third quarter earnings, sending fintech stocks on the way to recovery.
  6. Investing

    The Origins of the Chinese Stock Market Collapse

    Learn about some of the reasons for the volatility in the Chinese stock market, including expansion of margin lending and governmental support.
  7. Personal Finance

    The Best Way to Borrow

    There are many ways to secure funding. Find out the pros and cons of each way to borrow.
  8. Financial Advisor

    The 7 Best Peer-To-Peer Lending Websites (LC)

    A look at some of the most well-known and reputable peer-to-peer lending websites, their business models and successes to date.
  1. What impact does the Federal Reserve have on a bank's profitability?

    Learn how the Federal Reserve impacts a bank's profitability with its influence on the discount rate, federal funds rate ... Read Answer >>
  2. How does a credit crunch occur?

    A credit crunch occurs when there is a lack of funds available in the credit market, making it difficult for borrowers to ... Read Answer >>
  3. What kind of assets can be traded on a secondary market?

    Learn about the difference between the primary market and the secondary market, and what types of assets are traded on secondary ... Read Answer >>
  4. Are secondary capital markets beneficial for society, or are there purely speculative?

    Learn why secondary bond markets are essential for both the capital market and economy. Explore the reasons they must be ... Read Answer >>
  5. What economic indicators are important to consider when investing in the banking ...

    Find out which economic indicators are most useful for investors in the banking sector, especially those influenced by central ... Read Answer >>
Trading Center