(1) Agreement whereby commercial banks temporarily borrow liquidity from the central bank. Under a repurchase agreement, the Swiss National Bank (or equivalent) will buy a specific quantity of securities for a set period and subsequently sell them back to the bank it bought them from. Also called repos.

(2) The acceptance of securities (such as equity paper) by a bank or financing institution for a limited period, with the depositor or a third party undertaking to repurchase the relevant securities after a stipulated period.