1. What is discount? Why is it called "discount"? Seeking a popular explanation?

1. Popular explanation: "The other party wrote me a check saying how much to pay me after half a year. This check is called acceptance. As a result, two months later, I was in a hurry to use the money, and I had to ask for cash in advance, but there were still four months before the agreed payment date, so I said to the other party, hey, buddy, if you give me the money in advance, I will charge you three thousand less, and this three thousand will be a subsidy. This is called discounting. "

The word discount is actually the abbreviation of two nouns, namely subsidy and cash.

2. Discounting refers to the bill transfer behavior that the bill holder discounts the unexpired bank acceptance bill to the bank or other discounting institutions in order to obtain cash. The cost caused by discounting is the discount paid by the bill holder to the bank or other discounting institutions.

after the bill holder endorses the bank acceptance bill, the money can be recovered in advance through discount, and the discount bank or other discount institutions can also get the discount as the income from the discount business.

Discounting means that when a bank accepts a bill of exchange at maturity, a bank or other discount institution can claim back the money from the payer of the bill according to the denomination of the bill. Discount If the payer can't pay what he wants, the bank or other discount agency can also demand money from the endorser, the discount, that is, the discount.

II. Similarities and differences between ordinary loans and discounted loans

Loans are a form of credit activities in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them.

loans in a broad sense refer to loans, discounts, overdrafts and other lending funds.

Banks put the centralized money and monetary funds out through loans, which can meet the needs of social expansion and reproduction for supplementary funds.

connection: ① both of them are bank asset businesses; ② both of them have certain risks; ③ both banks can gain benefits. Differences: ① The parties to the credit relationship are different; ② The risks are different; ③ The term is different; ④ The interest is deducted before the bill discount loan is issued; Generally, the bank loan pays the principal first, and then receives the interest. 5. The discounted bill loan can also withdraw the funds in time without shovel.

III. Similarities and differences between refinancing and rediscounting

I. Similarities:

1. Both refinancing and rediscounting are provided by the central bank, and both are acts of providing support to financial institutions.

2. Refinancing and rediscounting are both important channels for the People's Bank of China to regulate the base currency and monetary policy tools for financial regulation.

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

2. Differences:

1. Re-lending refers to the loan from the central bank to commercial banks. Rediscussion is the behavior that the central bank provides financing support to commercial banks by buying 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 paper by the People's Bank of China to banking institutions is called rediscount.

Extended information:

The bond financing support tools for private enterprises are partially funded by the People's Bank of China through refinancing, and are operated by professional institutions in a market-oriented manner. By selling credit risk mitigation tools, guaranteeing credit enhancement and other means, we will focus on supporting the bond financing of private enterprises that are temporarily in trouble but have a market, prospects and competitive technology.

At the same time, the People's Bank of China actively supports commercial banks, insurance companies, bond credit enhancement companies and other institutions. On the basis of strengthening risk identification and risk control, it uses 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.