Non-Recourse Discounting is purchase from the seller of accepted term Bills of Exchange at a discount to allow for funding of the advance from the discount date until the maturity date of the bills. When the discount is provided on a non-recourse basis the financing bank has no recourse to the seller in the event of non-payment by the buyer or the buyers’ bank.
More from this Section
- Tier 2 Capital
Tier 2 Capital Comprises Property Revaluation Reserves, Undisclosed Reserves, Hybrid Capital, Subordinated Term Debt and General
- Foreign Exchange Brokers
Foreign exchange brokers are agents who facilitate trading between dealers without themselves becoming principals in the transaction. For this service, they charge ...
- Forward Discount
Forward Discount is the term applied to a foreign currency which is less expensive to trade forward than for spot settlement. A forward discount
- Bailout bond
Bailout bond is a bond issued by the Resolution Funding Corporation (Refcorp) to save the failing savings and loan associations in the late
- Par Value
Par Value is the value of a security when it is issued. For bonds and preferred stock, par value is equivalent to face value.
Currency is the paper money (such as dollar bills) and coins.
- Category of Banking System
Based on organizational characteristics banking system may be categorized as follows........