Functions Of Discount Houses A discount house is a financial institution that specializes in buying and selling short term financial instruments such as government securities and bills of exchange at a discount to their face value
The five discount houses in Nigeria are Associated Discount House Limited ADHL Consolidated Discount Limited CDL Express Discount House Limited EDL First Securities Discount House Limited FSDH and Kakawa Discount House Limited KDHL Discount houses serve several critical functions in the financial system Liquidity Provision They offer liquidity to financial institutions and governments by purchasing their short term debt instruments providing them with immediate capital
Functions Of Discount Houses
Functions Of Discount Houses
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A discount house is a financial institution that participates in the buying and discounting of bills of exchange and other financial products such as money markets certain government bonds and banker s acceptances Discount houses are financial institutions that act as intermediaries between commercial lenders and borrowers trading in various short term securities and instruments They play an important role in the banking sector by providing liquidity stability and efficiency to
Accommodation of Banks for Short Term Funds The functions of discount houses include the provision of short term accommodation for banks in temporary need of funds This function is critical since the monetary authorities are shielded away from A discount house in Nigeria is a specialist financial institution that acts as an agent for facilitating the Open Market Operation OMO allocations and as a market marker in Nigeria money market
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Before discount houses were established in Nigeria commercial and merchant banks along with the Central Bank of Nigeria CBN had started to perform some money market functions which discount houses perform in those countries where they are in existence A discount house also known as a bill broker buys money market instruments at a discount and holds or sells them as an investment tool These can include commercial paper bills of exchange treasury bills and other short term debt instruments
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A discount house is a financial institution that specializes in buying and selling short term financial instruments such as government securities and bills of exchange at a discount to their face value
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The five discount houses in Nigeria are Associated Discount House Limited ADHL Consolidated Discount Limited CDL Express Discount House Limited EDL First Securities Discount House Limited FSDH and Kakawa Discount House Limited KDHL
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