Notkredite

Notkredite, or emergency credits, are loans provided to bridge temporary liquidity shortages and to maintain financial stability. In German-speaking finance, the term is most closely associated with facilities that central banks or monetary authorities grant to banks in distress, acting as lenders of last resort. The concept also appears in consumer and corporate contexts as short-term, urgent lending, but the central-bank use is most central to policy discussions.

Typical Notkredite are short-term, highly regulated and tied to collateral. They are designed as a crisis-measure and not as routine funding. Access usually requires that the borrowing institution is solvent but temporarily illiquid, that eligible collateral is pledged, and that supervisory authorities approve the operation. Prices are set above normal market rates to deter excessive reliance.

Within the legal and regulatory framework, Notkredite are part of a central bank's tools for maintaining payment systems and financial stability. In most jurisdictions, access is granted sparingly and subject to reporting obligations, with conditions adjusted during crises. While they can prevent systemic crises, they also raise concerns about moral hazard and the risk of encouraging risky behavior if used too readily.

Related concepts include lenders of last resort and collateral-based lending.