rediscounting

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Rediscount

To declare a discount for the second time. For example, an issuer may offer a bond at a discount from its par value to entice investors. If this does not work, the issuer may discount the bonds further in order to encourage people to buy the bond.

rediscounting

the secondary purchase and sale of BILLS OF EXCHANGE, TREASURY BILLS and BONDS between their original issue and final redemption. When a bill of exchange is first issued it is usually purchased (i.e. ‘discounted’) by a DISCOUNT HOUSE. The discount house may hold on to the bill until maturity, or it may choose to on-sell it to another discount house, in which case the bill is then ‘rediscounted’.

For example, if a bill with a face value of £1,000 redeemable in one year's time is sold initially for £900 (giving a £100 discount on its formal redemption value), then it might be resold or rediscounted for £950 after six months. See DISCOUNT, DISCOUNT MARKET.

rediscounting

the purchase and sale of BILLS OF EXCHANGE, TREASURY BILLS and BONDS between their issue and redemption dates. For example, if a bond with a nominal value of £1,000 redeemable in one year's time is sold initially for £900 (giving a £100 discount on its formal redemption value), then it might be resold or rediscounted for £950 after six months. See also DISCOUNT, DISCOUNT MARKET.

References in periodicals archive ?

It has cut the budget for its rediscounting facility to the pre-crisis level of PHP20bn (USD450m) from PHP40bn.

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Foreign guarantees for loans made in naira are now permitted, while a Rediscounting and Refinancing Facility (RRF) has been introduced for medium and long term credit, in order to promote lending to non-oil industrial customers.

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Reserve Banks, it declared, exist for the purpose of "accommodating commerce and business," a purpose they fulfill by "furnishing an elastic currency" and "affording a means of rediscounting commercial paper.

Monetary Policy Frameworks and Indicators for the Federal Reserve in the 1920s

A member commercial bank could accommodate an increase in loan demand or currency withdrawals by rediscounting eligible commercial paper with its Federal Reserve Bank.

Seasonal accommodation and the financial crises of the Great Depression: did the Fed "furnish an elastic currency?"

The bank said on Thursday that it had created a PHP5bn special rediscounting window for banks with small business clients who had suffered from the recent typhoons.

Central bank of Philippines sets up fund for typhoon-hit borrowers

Through rediscounting the Reserve Banks would provide an elastic supply of balances in response to rapid demand shifts, preventing financial panics (White 1983, pp.

The Fed's entry into check clearing reconsidered

When the balance in a central bank's operations account falls below an agreed target level, it is required to restrict credit expansion, generally by increasing the cost to membercountries of rediscounting paper with the central bank or by restricting member-countries' access to rediscounting facilities.

How does the CFA Franc Zone really work?

The initial regulation provided for rediscounting short-term agricultural, industrial, and commercial paper, defined as eligible paper.

The misuse of the Fed's discount window

The liberalised rediscounting guidelines would enable banks to rediscount more loan papers and therefore, have access to additional funds that they can re-lend to the public.

Central bank of Philippines cuts rediscount rate

BOAD's access to the rediscounting facility of the Central Bank of West African States (BCEAO) makes additional funds available to it.

Fitch assigns BOAD a BBB rating with stable outlook

reserve requirements, regulations governing rediscounting, open market

The foundations of regulatory convergence and divergence between the Federal Reserve and European Central Bank

About RMP Capital Corp RMP Capital Corp is an international provider of factoring solutions for small to medium sized businesses, public works contractors, Rediscounting lines of credit to independent factoring companies, and Import-Export Factoring worldwide.