Meaning & use

new money in banking

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UK/ˌnjuː ˈmʌn.i ɪn ˈbæŋ.kɪŋ/
US/ˌnuː ˈmʌn.i ɪn ˈbæŋ.kɪŋ/

Meanings

  1. phraseuncountablefinance

    money that is added to a bank, fund, or economy from an outside source

    Grammar: Used as a singular idea; do not say 'a new money'.

    Patterns

    • bring in new money
    • attract new money
    • new money in banking

    The bank needs new money in banking to expand its lending.

    New money in banking often comes from deposits, investors, or government programs.

  2. phraseuncountablefinancespecialist

    in central banking, money created by a central bank and added to the financial system

    Grammar: Often used when talking about quantitative easing or stimulus.

    Patterns

    • inject new money
    • create new money

    The central bank injected new money into the banking system.

    Critics worry that creating new money in banking causes inflation.

  3. phraseuncountablefinancebusiness

    funds that a borrower or investor puts into a deal that were not part of the original agreement

    Grammar: Often contrasted with existing or old money in restructuring deals.

    Patterns

    • put in new money
    • new money in a deal

    The lender agreed to provide new money to keep the company running.

    In the restructuring, only new money in banking got priority repayment.

Common combinations

attract new money
The fund attracted new money from overseas investors.
inject new money
The government injected new money into the banking sector.
new money in banking
Analysts discussed the role of new money in banking.
bring in new money
The merger is expected to bring in new money.

Synonyms and how they differ

fresh capital
Fresh capital is broader and can include equipment or assets, while new money usually means cash.
additional funds
Additional funds is a general term; new money is more specific to banking and finance.

Opposites

Commonly confused: new money in banking or new money (wealth)?

new money in banking vs new money (wealth)

Outside banking, 'new money' means wealth recently acquired rather than inherited. In banking, it means funds added to the system.

Practice

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