Government-sponsored enterprise (GSE) - Financial definition
Financial acronyms
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Country
: United States of America
Concise definition of the term government-sponsored enterprise
Government-sponsored enterprises are quasi-governmental, privately-held entities in the United States which have been established with the purpose of facilitating the flow of credit to specific sectors of the economy.
Comprehensive definition of the term government-sponsored enterprise
GSEs are established by Congress.
Sectors where borrowing is facilitated by GSEs include students, farmers, and homeowners.
Examples for GSEs would be the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage (Freddie Mac) and The Federal Agricultural Mortgage Corporation (Farmer Mac).