Bank Acceptance Bill discount

Bill discount

It refers to the demand for funds, which will not expire in your handsCommercial ticketBank Acceptance notes or short-term bonds are converted into cash at the bank or discount company's request, and the bank or discount company (the financing company) receives the unexpired bills or short-term bonds, deduct the invoice amount from the discount dateInterestAfter the bill is paid, the bill will be collected to the drawer upon expiration. Therefore, for the ticket holder,DiscountIt is to sell the bills that expire at the end of the bill to the bank to obtain liquidity, so that the capital backed by commercial credit can be withdrawn in advance. For banks or discount companies,DiscountIt is a lending business combined with commercial credit.

The discount market can be divided into two types. One is a transaction in which a ticket holder requests a discount to a commercial bank or a discount company for cash, which accounts for most of the business in the discount market; the other is that the Central Bank will re-discount the bills that have been discounted by commercial banks or discount companies to provide financing for banks and discount companies. Rediscount is an important means for the central bank to control financial and credit regulations. The types of discount bills can also be divided into three types: discount of bank bills, discount of commercial bills, discount of bonds and discount of treasury bonds.

Product Definition 
A bank Acceptance Bill is a financing action by a discount bank to transfer the discounted bank acceptance bills it holds to other banks. On the transfer-out bank, the money order is transferred to the transfer-in bank. After the discount interest is deducted from the money order amount, the remaining amount of the money order is paid to the transfer-out bank.

Generally,Bill discountThere are three types: discount, discount, and discount..
Discount means that the customer (the ticket holder) sells the non-expired bill to the Discount Bank to obtain the cash in advance. Generally, the discount of bills handled by industrial and commercial enterprises to banks belongs to this type;
A discounted transfer refers to the transfer of a bill from a bank that has been bought at a discount and has not yet expired to another commercial bank. A discounted transfer is generally a way for commercial banks to borrow funds from each other;
Discount againIt refers to the discounting of a discount bank to the People's Bank of China with an unpaid discount order, and obtaining another loan from the People's Bank of China through the transfer of the bill.
Discount againIt is a kind of credit business of the central bank and a monetary policy tool used by the Central Bank to implement the monetary policy.

Subdivision type
* Bank acceptance bills are converted into two types: Transfer discount and transfer discount based on different transaction directions.

• Transfer discount refers to the discount of an outstanding bank acceptance bill issued by other banks to the bank.

• The transfer discount refers to the discount made by the Bank to an outstanding bank acceptance bill that has been discounted.

* A bank Acceptance Bill is converted to a discount based on different transaction methods, which can be divided into two types: a buyout order and a repurchase bank Acceptance Bill.

• The discount of a buyout bank acceptance bill refers to the bank Acceptance Bill held by the transferout bank that has been discounted but has not yet expired. After the transfer, the holder of the bill changes to the bank.

• A repurchase bank Acceptance Bill is a discounted but not yet expired bank acceptance order held by the transferout bank, which is temporarily transferred without changing the holder of the bill, the Exchange Order is purchased on the date agreed by both parties.