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Balance-Sheet Channel

The notion that changes (premeditated changes) in interest rates affect borrowers' balance sheets and income statements. As a type of...

Moral Suasion

The process which a central bank or monetary authority follows to persuade banks and other financial institutions under its supervision...

Agency Capture

A situation that arises when regulatory policies and action often favor the industry being regulated at the expense of the...

Regulatory Capture

A situation that arises when regulatory policies and action often favor the industry being regulated at the expense of the...

Capital Forbearance

A regulatory policy (i.e., a policy implemented by central banks and other regulatory authorities) that permits banks and financial institutions to continue operating even...

Repo Rate

The annualized short-term interest rate at which the central bank lends money to commercial banks. In effect, repo rate represents...

Regulatory Forbearance

A regulatory policy (i.e., a policy implemented by central banks and other regulatory authorities) that permits banks and financial institutions to continue operating even...