The-definition.com

Definition

Purchase Agreements (REPOs)

 REPOs or repurchase agreements are a form of non-deposit sources of bank’s fund. The main purpose is to use of low risk bank assets for short-term borrowings. It is an agreement between lender and borrower of securities in which the securities are sold temporarily to the lender to get financing and then is bought back after the agreement period. Most agreements in these types of contacts are for over-night to few months.

Share it:  Cite

More from this Section

  • Proximate cause
    Proximate cause is factor causing damage to property for which there is an unbroken chain ...
  • “Dirty” float
    “Dirty” float refers to a system of floating (i.e., market-determined) exchange rates ...
  • Risk structure of interest rates
    Risk structure of interest rates is the relationship among the interest rates on various ...
  • Equity risk premium
    Equity risk premium refers to the average annual return of the market expected by investors ...
  • Cosigner
    Cosigner is a person obligated to support the repayment of a loan by a borrower who either ...