When people need money, their first thought is to apply for a loan from the bank. So when do banks need to apply for loans? Many people subconsciously think that the bank is the place with the most money and there will be no financial trouble. In fact, banks also need loans. When a bank applies for a loan from the central bank, it is called refinancing. So what is the specific meaning of refinancing and what are the types of refinancing?

What do you mean by refinancing?

Re-loan refers to the loan issued by the central bank to financial institutions to achieve the monetary policy objectives. Refinancing has two meanings. Refinancing in a narrow sense refers to the central bank issuing loans to financial institutions. Refinancing in a broad sense refers to refinancing.

Types of refinancing

1. Loans granted to meet the needs of insufficient liquidity

2. Loans issued to cope with financial risks.

3. Special loans, including special loans from local governments, re-loans for supporting agriculture, short-term working capital loans, interest-free re-loans and re-loans from small and medium-sized financial institutions.

The above is the introduction of relevant knowledge about refinancing, and more financial knowledge can be used for reference.