1. to discount again, especially for a commercial paper or bill of exchange that has already been discounted
Usage: finance; banking

1. the act of rediscounting or a bill or note that is rediscounted
Usage: finance; banking
2. the rate charged by a central bank when it rediscounts commercial paper for member banks
Usage: finance; banking

Examples

• The Federal Reserve decided to rediscount the commercial paper to provide liquidity to the banking system.
• Banks often rediscount their notes with the central bank during periods of tight credit.
• The rediscount rate was lowered to encourage more lending activity.
• Commercial banks submitted their bills for rediscount at the regional Federal Reserve bank.
• The rediscount facility allows banks to convert their commercial paper into cash quickly.
• During the financial crisis, many institutions relied on rediscount operations to maintain liquidity.