It will provide funding for banks over an extended period of several years, lending against a much greater value of collateral in the form of loans to the real economy. (politics.co.uk)
Typically, this purchase price is a discount to the expected value of the collateral securing the loan, such value to be realized after foreclosure and liquidation of the property. (mfafinancial.com)
The general rule is to discount the current value of the collateral. (valuepenguin.com)