DISCOUNT HOUSES are establishment that specializes in the provision of short term borrowing and lending. They perform the duty of discounting Treasury Bills that belongs to the Government, bills of exchange and other securities.
FUNCTIONS OF DISCOUNT HOUSES
- Provides safe and liquid assets to the banking system as at when they are needed.
- Provides short-term finance for industry and trade by discounting bills of exchange.
- They also provide short-term finance to the Government through the acquisition of treasury bills.
- They help the Central bank to act as a lender of last resort to the banking system.