Temporary Liquidity Guarantee Program (TLGP)

A program adopted by the Federal Deposit Insurance Corporation in 2008 to encourage liquidity in the interbank lending market. The program was designed to decrease the cost of bank funding so that bank lending to consumers and businesses will normalize and to also strengthen confidence and encourage liquidity in the banking system by guaranteeing newly issued senior unsecured debt of banks, thrifts, and certain companies, and by providing full coverage of noninterest bearing deposit transaction accounts, regardless of dollar amount.