Retail Repurchase Agreement
Barron's Banking Dictionary:
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Retail Repurchase Agreement
Type of Repurchase Agreement offered as an alternative to conventional savings deposits. The investor buys an interest in a pool of securities, usually government securities. Funds are swept daily or weekly. Retail repos are securities transactions, not insured deposits, and carry some risk. The investor has to look to the selling bank's financial standing as the source of repayment when these contracts mature.
Investopedia Financial Dictionary:
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Retail Repurchase Agreement
An alternative to regular savings deposits. Under a retail repurchase agreement, an investor buys a pool of securities in aggregate denominations of less than $100,000 for a term of less than 90 days. The agreement is not automatically renewable.
Also known as a "retail repo."
Investopedia Says:
Unlike regular savings deposits, retail repurchase agreements are not insured by the Federal Deposit Insurance Corporation, are not guaranteed, and may lose value. They are classified as securities transactions and, as such, are subject to default risk.
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Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
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