Temporary Liquidity Guarantee Program

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Temporary Liquidity Guarantee Program

A rule adopted by the FDIC guaranteeing certain transaction accounts and unsecured loans that banks make to one another. The rule was implemented in 2008 to promote liquidity in interbank lending in the wake of the global financial crisis that started that year. It began to expire in 2010, though the Dodd-Frank Act made certain portions permanent.

References in periodicals archive ?

The second action was taken under our Temporary Liquidity Guarantee Program and applies only to those insured depository institutions that choose to opt in to the program.

FDIC chairman Sheila Bair: the current chairman of the Federal Deposit Insurance Corporation shares her views on navigating the banking system through the current financial market crisis

On October 14, 2008, the FDIC announced the creation of the Temporary Liquidity Guarantee Program (TLGP) to provide liquidity for interbank lending, which diminished significantly during the third quarter of 2008.

The Federal Deposit Insurance Corporation (FDIC): summary of actions in support of housing and financial markets