Rediscount
Rediscount involves the re-discounting of short-term negotiable debt instruments, such as bankers' acceptances and commercial paper, that have already been discounted with a bank.
Banking terms for discount-window access, rediscounting, eligible paper, and policy rates used in liquidity support.
Rediscount and discount policy covers how banks or central banks provide liquidity by discounting or rediscounting eligible financial paper, usually at a specified rate and under defined eligibility rules.
Use this branch when a rate or policy term affects short-term bank liquidity, collateral use, eligible paper, central-bank lending, or the interpretation of a discount rate.
| Term | Use it for |
|---|---|
| Rediscount | The act of discounting already-discounted paper to obtain liquidity. |
| Rediscount Rate | The rate applied when eligible paper is rediscounted. |
| Rediscounting | The process and policy context for using rediscount channels. |
Discount and rediscount terms can affect how banks fund themselves during tight liquidity conditions, how eligible assets are valued for liquidity access, and how policy tools transmit into credit conditions. The exact meaning depends on jurisdiction, central-bank rules, collateral eligibility, and facility design.
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Rediscount involves the re-discounting of short-term negotiable debt instruments, such as bankers' acceptances and commercial paper, that have already been discounted with a bank.
The rediscount rate is the rate a central bank charges when discounting eligible paper or lending to financial institutions.
Practice of selling or pledging previously discounted bills or notes to another bank or central bank.