# Penalty interest (penalty rate)

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- Post ID: 591095
- Modified: 2023-07-25T21:14:33+00:00
- Language: en

## Definition

The price paid by the central bank in extraordinary cases to banks to break up a liquidity bottleneck. - Also popularly used to refer to the early repayment penalty, i.e. the fee charged by banks if a loan agreement is repaid by the customer before the end of the agreed term. - A payment of x percent that self-reporting tax evaders (tax evaders) are required to make on the total amount concealed from the tax authorities in post-taxation (tax arrears). - A special interest rate charged by a central bank for falling below the reserve requirement. - An interest payment that creditors add to the amount owed when payments are late: default interest. - See bail-out, money market operations, money lender of last resort, negative interest rate, panic selling, prenumeration reservation, default surcharge, debt restructuring bubble. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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