Rediscount

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Rediscount

To discount short-term negotiable debt instruments for a second time, after they have been discounted with a bank.

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.

rediscount

To discount a negotiable instrument a second time.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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With regard to the establishment of a central bank, Warburg believed that American commercial paper would only become considered a "quick" asset if a safe proportion of those assets could be rediscounted. This goal could be achieved most directly if there was a central bank ready to buy those assets.

The call loan market in the U.S. financial system prior to the Federal Reserve System

Hence, when such loans were offered to Reserve Banks in exchange for currency or reserve balances, the Reserve Banks rediscounted the paper at the current discount rate.

Conducting monetary policy without government debt: the Fed's early years

He also stated that under Regulation J acceptances which had been renewed after the delivery of the goods collateral were merely ineligible for rediscount; provided that they were not rediscounted, there was no rule preventing the re-extension per se of acceptances by American banks.(46)

"Quis custodiet ipsos custodes?" The Federal Reserve System's founding fathers and allied finances in the First World War

For all banks with rediscounted loans, the BSP is also granting a 60-day reprieve to settle outstanding loans in affected areas.

News in brief

Rediscounted loans are bank receivables that are sold to the central bank for extra funds, which can subsequently be lent out to businesses and individual borrowers.

PH banks taking out less loans from BSP

Among the BSP's temporary relief measures is also the granting of a 60-day grace period to settle the outstanding rediscounting obligations as of January 17 with the BSP of all rediscounting banks in the affected areas and allowing banks to restructure with the BSP, on a case-to-case basis, the outstanding rediscounted loans of borrowers affected by the calamity.

BSP grants 'Agaton' relief measures

Loans taken out by smaller thrift and rural banks also fell to P36 million or 99.2 percent less than the P4.32 billion in rediscounted loans they tapped in the same month last year.

Rediscounted loans are bank receivables that are sold to the central bank for extra funds that can subsequently be lent out to businesses and individual borrowers.

Banks shun BSP's rediscounting facility Lenders turn to cheaper funds from other sources

In a statement, the Bangko Sentral ng Pilipinas (BSP) said rediscounted loans by commercial, thrift, and rural banks fell by 44.1 percent year on year to P16.409 billion at the end of August.

The BSP said 81.7 percent of the rediscounted loans at the end of the month went to commercial credits, 3 percent went to agricultural and industrial loans, while 15.3 percent went to other sectors.

Banks see decline in rediscounted loans

Demand for rediscounted loans declined as the banking industry remained highly liquid and adequately capitalized during the period.