From Longman Business Dictionaryoverfundingo‧ver‧fund‧ing /ˌəʊvəˈfʌndɪŋˌoʊvər-/ noun [uncountable]1when an organization receives too much money in relation to its needsSome departments may, through overfunding, be absorbing resources unfairly.2BANKING when a CENTRAL BANK borrows more money from financial institutions in order to take money out of the economy and reduce the MONEY SUPPLY (=the amount of money in the economy)The policy of overfunding led to persistent money market shortages.
