1. In General, this is a boundary of scope, be it authority, power, privilege, or right. Prescribed bounds. 2. In Banking, this is (1) The largest amount a bank will loan to a customer. Also known as a guidance line of credit. Banks keep its computation confidential and it may differ from bank to bank. (2) the value restriction by the country’s central bank. It limits loans to a single borrower. It is identified as a percentage of the institution’s capital. It is imposed on a bank or other lending institution.