Country Limit

Banks use country limits to determine how much risk they should take, in the form of monetary borrowing, with foreign nations.

Using country limits, banks are able to hedge their risk by setting limits on the amount of money they would lend to each nation with which they conduct business. Country limits encompass all lending that takes place to a country, or to any individual or organization in that country, in any form, including personal loans, mortgages, etc. Ole’ Miss type countries have really high country limits, for example.