prime lending
safe lending to creditworthy borrower lending to borrowers who have no delinquencies or defaults and no historical or current financial problems.
Related definitions of "prime lending"
- Also called vanilla lending
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safe lending to creditworthy borrower lending to borrowers who have no delinquencies or defaults and no historical or current financial problems.
It’s simple, the authorities pump money in, capital markets go in one direction but the real economy goes in the opposite one; we are crowded out. This is my new thesis: LTRO (longer-term refinancing operations; all forms of monetary stimulus) are just propping up the equity market and all securities markets, not necessarily directly via banks’ prop-desk trading but more crucially via prime-brokerage lending to hedge funds that’s the [new] transmission mechanism
By John A. Morrison
Key interest rate: Commercial bank prime lending rate 7.56% (31 December 2007))
in what was a new space in the US mortgage market. What should have happened to counteract this is that Fannie and Freddie should have moved to properly redefine the criteria for prime lending. They did not do so. Another factor was that there was no real wage increase through this credit boom period, so the boom pushed household credit levels across the United States toward a level comparable to the norm in Anglophone countries.
By Leonard Seabrooke
Definitions of ’prime lending’ and meaning of ’prime lending’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’prime lending’ and other financial terms with our online QFINANCE Financial Dictionary.