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

Collateral is an asset of the government that is used for the protection of consumers. Collateral is an asset that a borrower owns and uses this as a guarantee to a lender until the loan is repaid. Collateral is an asset that a borrower took as a loan. Collateral is an asset that the government provides to farmers.

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