loan creation
"Loan creation" has distinct meanings in banking and linguistics, involving the generation of loans and the creation of new words, respectively.
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Definition
C1Banking
(technical, financial)The process by which banks generate new money by issuing loans and recording the amount as a deposit in the borrower's account.
Example
- Through loan creation, banks can lend more money than they actually have in cash deposits.
- Loan creation is a key mechanism in modern banking systems.
C2Linguistics
(academic, technical)The formation of a new word in a language to match a foreign concept semantically without directly borrowing from the foreign language.
Example
- The Yiddish word 'mitkind' is an example of loan creation based on the English word 'sibling'.
- Loan creation often fills semantic gaps triggered by contact with other languages.
Similar
Terms that have similar or relatively close meanings to "loan creation":