First of all, they have different functions:

1. The role of rediscount: As one of the three traditional monetary policy tools of western central banks (open market business, rediscount and deposit reserve), rediscount has been widely used in many countries, especially after the Second World War, it has been successfully applied to the economic reconstruction of Japan, Germany, South Korea and other countries.

The reason why rediscount can get such attention and application is that it not only affects the credit expansion of commercial banks and regulates the total money supply, but also can selectively finance different kinds of bills according to the requirements of national industrial policies and promote economic restructuring.

2. The role of re-lending: By adjusting the interest rate of re-lending, the central bank affects the cost and availability of credit funds obtained by commercial banks from the central bank, thus changing the money supply and market interest rate.

For example, when the central bank wants to tighten monetary policy, it can raise the refinancing rate, reduce the amount of base money, increase the loan cost of commercial banks to the central bank, and curb the loans of commercial banks to the central bank.

The adjustment of refinancing interest rate is an effective way for the central bank to publicize the changes of monetary policy to commercial banks and the society, which can have a forecasting effect and thus affect people's expectations to a certain extent.

When the central bank reduces the refinancing rate, it means that inflation has eased in the eyes of the central bank, which will bring investment and economic growth, and adjust the industrial structure and product structure to some extent.

Second, they are different in nature.

1. The essence of rediscount: rediscount is the behavior that the central bank provides financing support to commercial banks by purchasing discounted but unexpired commercial bills held by commercial banks.

2. The essence of refinancing: refinancing refers to the loans granted by the central bank to financial institutions to achieve the monetary policy objectives. China's refinancing has two meanings. Refinancing in a narrow sense refers to the general term for central bank loans to financial institutions. Broadly speaking, refinancing refers to the concept of refinancing, including bill rediscount.

Extended data:

In China, the People's Bank of China timely adjusts the total amount of rediscount and interest rate, defines the choice of rediscount bills, achieves the purpose of dealing with the base currency and implementing financial macro-control, and at the same time plays a role in regulating the credit structure.

The last adjustment of rediscount and refinancing in China was on February 26th, 20 10. The People's Bank of China announced that it would raise the refinancing rate of financial institutions, in which the annual rate of/kloc-0 was raised by 0.52 percentage points to 3.85%, and the rediscount rate was raised from 1 .8% to 2.25%.

Calculation method of rediscount interest rate

For example, a commercial bank rediscounts a bill with a face value of 654.38+00,000 yuan discounted by customers to the central bank. When the central bank accepts the rediscounted bill, it is assumed that the commercial bank actually gets a discount amount of 880,000 yuan (loan amount) and the maturity date of the bill is 654.38+0.80 days.

Calculated by the monthly interest rate, the rediscount rate is = [(100-88)/100] × (1/6 )× (100%) = 2%, that is, commercial banks have to pay 2% rediscount rebate to the central bank.

People's Network-How do rediscount and refinancing guide the flow of funds?

Second, the similarities and differences between refinancing and rediscounting

I. Similarities:

1, refinancing and rediscounting are provided by the central bank, and they all support the behavior of financial institutions.

2. Refinancing and rediscounting are not only important channels for the People's Bank of China to regulate the base currency, but also monetary policy tools for financial regulation.

3. Re-lending and re-discounting are important means for the People's Bank of China to carry out macro-control on the operation of the national economy.

Second, the difference:

1. Re-loan refers to the loan issued by the central bank to commercial banks. Rediscussion is the behavior that the central bank provides financing support to commercial banks by purchasing discounted but not yet expired commercial bills held by commercial banks.

2. In the financial field, loans granted by the People's Bank of China to banking institutions, that is, people's bank loans, are called refinancing; The discount of commercial bills by the People's Bank of China to banking institutions is called rediscount.

Extended data:

Private enterprise bond financing support tools are partially funded by the People's Bank of China through refinancing, and operated by professional institutions in a market-oriented manner. Through the sale of credit risk mitigation tools, guarantee and credit enhancement, we will focus on supporting the bond financing of private enterprises that encounter temporary difficulties but have market, prospects and technical competitiveness.

At the same time, the People's Bank of China actively supports commercial banks, insurance companies and bond credit enhancement companies. On the basis of strengthening risk identification and risk control, we use credit risk mitigation tools and other means to support private enterprise bond financing. Give full play to the role of local governments in improving the business environment and supervising the standardized operation of private enterprises.