Banking
Repo Agreement — Securities Sold Under Repo
The bank raises short-term funding by selling government bonds with an agreement to repurchase.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Central Bank Settlement | Asset (+) | 10,000,000.00 | - |
| Repo Liabilities (Borrowings) | Liability (+) | - | 10,000,000.00 |
💡 Accountant's Note
A repo is economically a secured borrowing — the bonds stay on the bank's balance sheet (not derecognized) and the cash received is a liability. The repo rate is expensed as interest over the term.
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