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limit

Definition 1

General: Prescribed bounds of an authority, power, privilege, or right.

Definition 2

Banking: (1) Extent to which a bank will advance credit to a customer. Also called a guidance line of credit, its computation may differ from bank to bank, and is rarely (if ever) disclosed to customers. (2) Restriction imposed on a bank or other lending institution by the country's central bank for loans to a single borrower, expressed as a percentage of the capital of the institution.

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