government-sponsored enterprises (GSEs)

Government-Sponsored Enterprises (GSEs) are financial institutions created by the government to support specific sectors of the economy, primarily housing and agriculture. They help increase access to capital and lower borrowing costs by providing guarantees and liquidity in the financial markets. Well-known examples include Fannie Mae and Freddie Mac, which focus on supporting the housing market by ensuring that lenders can offer mortgage loans to homebuyers. GSEs aim to promote stability and affordability in their respective markets while operating with some degree of independence from direct government control.