rediscounting
Bank borrows again
Rediscounting is when a central bank lends money to commercial banks by purchasing loans those banks have already made, essentially discounting paper that was previously discounted.
A bank makes a loan to a customer at one interest rate, then sells that loan to the central bank at a slightly lower rate to obtain immediate cash.
This mechanism helps banks maintain liquidity and is a traditional tool of monetary policy.
National currency management institution
- Federal ReserveUS central banking system
- monetary policyCentral bank economic controls
- liquidityConvertibility to cash
- collateralSecurity for debt
bank reserves · refinancing · lender of last resort · repo · promissory notes · interbank · open market · base rate
Bank-issued payment guarantees
- factoringBreaking into multiplicative parts
- receivablesOutstanding amounts owed you
- acceptanceConsent to receive
- endorsementFormal expression of support
central bank
National currency management institution
- Federal ReserveUS central banking system
- monetary policyCentral bank economic controls
- liquidityConvertibility to cash
collateral · bank reserves · refinancing · lender of last resort · repo · promissory notes · interbank · open market · base rate · accommodation
letters of credit
Bank-issued payment guarantees
- factoringBreaking into multiplicative parts
- receivablesOutstanding amounts owed you
- acceptanceConsent to receive
discount, account, counting, compute, recount, discounted, computation, discounting, discounter