Temporary Liquidity Guarantee Program
The Temporary Liquidity Guarantee Program (TLGP) is a program adopted by the Federal Deposit Insurance Corporation (FDIC) on October 13, 2008 during the Global financial crisis of 2008 to encourage liquidity in the interbank lending market.
Several stated purposes of this program are (1) "to decrease the cost of bank funding so that bank lending to consumers and businesses will normalize." and (2) "to strengthen confidence and encourage liquidity in the banking system by guaranteeing newly issued senior unsecured debt of banks, thrifts, and certain holding company, and by providing full coverage of non-interest bearing deposit transaction accounts, regardless of dollar amount."
The TLG Program became effective on October 14, 2008 and was subsequently revised based on bank feedback.
Many FDIC insured entities have chosen to not participate ("opt out") in one or both of these programs.
Read more about Temporary Liquidity Guarantee Program: Interim Rule, Amended Interim Rule, and Final Rule, Components, See Also
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