What is a credit guarantee program?

The Federal Deposit Insurance Corporation (FDIC) created the program guarantees of borrowing under the auspices of the temporary liquid warranty program. This programme was established by the existing problems and difficulties of credit institutions. PurposeThis programme aims to strengthen and maintain confidence in the U.S. banking sector. It is intended to improve the liquidity in the Bank. It was created to facilitate temporary program download creditworthy business loans and customers.DescriptionThrough, which guarantee FDIC guarantees newly acquired debt institutions are authorized. The FDIC does not provide complete coverage without Cap warranty program covers new issued guaranteed debt, including promissory notes, commercial paper, certificates of deposit and interbank funds limit.FeaturesThe interest-bearing accounts. Must the debt was issued before 30 June 2009. The debt that only this program covered by 125% of debt entity September 30, 2008. This program will expire on June 30, 2012.UsesCompanies has helped, take advantage of this program are FDIC deposit institutions of American banking portfolio and U.S.-savings and loans companies provided.