rediscount
Secondary note sale
Rediscount is when a bank sells a note or bill it already holds to another institution—typically a central bank—before maturity, receiving cash minus interest.
The paper has already been discounted once when the bank bought it; now it's discounted again.
Central banks use rediscounting to provide liquidity to commercial banks: The Federal Reserve's rediscount window helped stabilize regional banks during the crisis.
National currency management institution
- lender of last resortEmergency credit source for banks
- bill of exchangeNegotiable instrument ordering payment
- promissory noteWritten debt obligation
- government securitiesState-backed debt instruments
maturity · endorsement · secondary market · presentment · acceptance
Central bank economic controls
- interest rateCost of borrowing money
- bank rateOfficial borrowing cost
- inflationSustained price level increase
- deflationSustained decrease in prices
financial stability · money market · quantitative easing · tightening · central banking
Funds banks hold back
- short-term creditLoan repaid quickly
- money supplyTotal currency in circulation
- cash flowMoney entering and exiting
- fundingSupplying monetary resources
Styling by trimming
- creditworthinessAbility to repay debts
- guaranteeFormal promise of fulfillment
- backingAid or sponsorship
- encumbranceHindrance or legal claim
central bank
National currency management institution
- lender of last resortEmergency credit source for banks
- bill of exchangeNegotiable instrument ordering payment
- promissory noteWritten debt obligation
government securities · maturity · endorsement · secondary market · presentment · acceptance
monetary policy
Central bank economic controls
- interest rateCost of borrowing money
- bank rateOfficial borrowing cost
- inflationSustained price level increase
deflation · financial stability · money market · quantitative easing · tightening · central banking
bank reserves
Funds banks hold back
- short-term creditLoan repaid quickly
- money supplyTotal currency in circulation
- cash flowMoney entering and exiting
haircut
Styling by trimming
- creditworthinessAbility to repay debts
- guaranteeFormal promise of fulfillment
- backingAid or sponsorship