Bank Discount Basis

Business, Legal & Accounting Glossary

Definition: Bank Discount Basis

Bank Discount Basis

Full Definition of Bank Discount Basis

A type of quoting convention that is used by financial institutions when they are quoting the prices for fixed income securities that are sold at a discount. This is primarily used with U.S. Government issues. These quotes are presented as a percentage of face value, and they are determined by discounting the bond by using the 360-day count convention, and assuming that there are twelve 30-day months in a year. The 30/360 day count convention is the standard when quoting government treasury bonds for banks.

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Modern Language Association (MLA):
Bank Discount Basis. Payroll & Accounting Heaven Ltd. November 29, 2021
Chicago Manual of Style (CMS):
Bank Discount Basis. Payroll & Accounting Heaven Ltd. (accessed: November 29, 2021).
American Psychological Association (APA):
Bank Discount Basis. Retrieved November 29, 2021, from website:

Definition Sources

Definitions for Bank Discount Basis are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.