What is the meaning of the term 'collateral' in the context of the banking system?

A

Collateral is an asset of the government that is used for the protection of consumers.

B

Collateral is an asset that a borrower owns and uses this as a guarantee to a lender until the loan is repaid.

C

Collateral is an asset that a borrower took as a loan.

D

Collateral is an asset that the government provides to farmers.