Definition
Informal direction from central banks to commercial banks about lending levels, used extensively in Japan to control credit without formal policy. It's called 'guidance' but functions more like strongly-worded suggestions you can't ignore.
Example Usage
The Bank of Japan's window guidance suggested banks might want to slow real estate lending, which everyone understood meant 'do it or else.'
Origin
Japanese central banking practice that emerged in the post-war period
Fun Fact
Window guidance was officially discontinued in Japan in 1991, though conspiracy theorists insist it continues through informal channels.
Source: Central banking and monetary policy terminology
Related Terms
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See “window guidance” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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