Functions of discount houses in nigeria. (PDF) Discount Houses Operations, the Money Market and the Nigerian Economy: A Preliminary Investigation 2019-02-13

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Functions Of Discount Houses In Nigeria

functions of discount houses in nigeria

The research is designed on the quasi-experimental approach using the questionnaire as the critical research instrument. Yes, your are likely to find that a discount house has a leg in the capital market, albeit through a subsidiary. It issues guidelines on the establishment of Stock Exchanges in furtherance of the deregulation of the capital market. This in effect helps to ensure that such savings are redistributed into their most productive use. The specific role of the financial sector to which Discount Houses belong is very crucial to the rapid growth of any economy. Phone: +234 84 237473, 237650; Fax: +234 84 237415 Email: Website:.

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CBN Sets New Rules for Banks, Discount Houses

functions of discount houses in nigeria

Finally, the findings lead to the conclusion that macro management of Pakistan's economy does not appear to ensure the consistency of the interventions. Given that the discount houses were, at inception, expected to make a huge contribution to developing the money market and adding a lot of steam to the economy through their intermediation in short-term securities trading, it won't be misplaced to argue that more awareness by the public, and indeed, participation, is needed. Currently, there is a general banking operation. While a constructive review shall be made of the origin and general functions of discount houses, the scope of this study shall more specifically be delimited to the specialized role of these house in the financial sector ie that of intermediation between other financial institutions especially banks. A regression model is formulated to regress the output gap against the macroeconomic variables which are believed to have a significant impact on the economy as a whole. These institutions include discount houses, commercial and merchant banks, and special purpose banks, like the Nigerian Agricultural Co-operative and Rural Development and Community banks. A discount house specializes in discounting short-dated financial securities and acts as an intermediary between a lender and a borrower.

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Discount Houses, Money Market and Economic Growth in Nigeria / Osabuohien Evans / Profiles / Home

functions of discount houses in nigeria

Phone: +234 9 2341696-7, 234 9 6726868-9 ; Fax: +234 9 2341698 Email: Website: Consolidated Discount Ltd. In so doing, the discount houses act as intermediaries between the central bank and the banking system in England. Money market institutions constitute the hub of the financial system. To the general public, the answer will be a clear 'little'. Also based on the questionnaires, responses to specific questions shall also be used to test the various hypotheses of this study.

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Nigerian Discount Houses: Understanding Their Services and How to Use them

functions of discount houses in nigeria

Easily search the site or entire web. Nicholas House, 6th Floor, 28A Catholic Mission Street, Lagos Island, Lagos. For individuals wishing to invest in the Capital Market in form of buying shares, what they need do is to consult a Stock broking firm and register with the broking firm. What that means, in essence, is that your money market and capital market stocks, bonds, etc investment needs can all be tackled under the same umbrella. More so, they do not only advise on the best option, they undertake total financial restructuring of the company before introducing the facility to the company.

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Discount Houses, Money Market and Economic Growth in Nigeria / Osabuohien Evans / Profiles / Home

functions of discount houses in nigeria

Upon the payment of the 25billion Naira paid-up capital, the Governor may issue a license with or without conditions or refuse to issue a licence and the Governor need not give any reason for the refusal. Through an objective survey, this study shall seek to identify how significantly or otherwise the financial intermediation of discount houses has contributed to the existing level of growth in the Nigeria economy. As the number of financial intermediaries increased, it become very obvious that as an industry, they too required intermediaries amongst themselves if they must conveniently meet the ever-growing liquidity need of the financial and industrial world. Against this backdrop, it therefore becomes very pertinent to address certain critical issues — questions which form the bedrock of this research work. The Nigerian financial System has undergone some remarkable changes in recent times. All registered insurance companies in Nigeria are required to reinsure 20% of premium collected with the National Insurance Commission. In terms of participants, the number of supply and demand of short term funds in the money market rose from only eight 8 in 1960 to 1,297 in 1985 and increased to about 2000 at the end of 1994.

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Nigerian Discount Houses: Understanding Their Services and How to Use them

functions of discount houses in nigeria

The operational domain of Discount Houses is the money market. With over ten years of discount house operations in Nigeria, the question of evaluating their specialized role in financial intermediation becomes necessary. Though bonds are not short-term market securities earlier said to be the domain of discount houses , discount houses are approved to deal in the primary market bond auctions as well as the secondary bond market. A superior approach would involve the introduction of policies tailored to the specific needs of the economy. Workers in enterprises employing more than 25 persons are to be automatically registered by their employers. It does this by offering loans to discount houses through commercial paper or government-backed securities.

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CBN Sets New Rules for Banks, Discount Houses

functions of discount houses in nigeria

This implies the fast disappearance of the erstwhile financial management myopia that had rocked them over the years. Tarka Road, Area 3, Garki, Abuja. Some of these developments include the promulgation of the Failed Banks Recovery of Debt and Financial Malpractice in Banks Decree No. The National Insurance Commission was established to provide insurance cover for insurance companies. Since the Government commenced active deregulation of the economy in September 1986, the commercial banking sector has continued to witness rapid growth, especially in terms of the number of institutions and product innovations in the market. Discount Houses A discount house is a special, non-bank financial institution intervenes in mobilizing funds for investments in securities in response to the liquidity of the system.

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Functions Of Discount Houses In Nigeria

functions of discount houses in nigeria

Available materials are also sparsely distributed all over the country. Past performance is no guarantee of future results. Banks in need of funds will sell commercial paper to the discount house which takes a small spread from the transaction. The funds were sourced mainly through reduction in outgoing and other assets which together account for 80. This paper empirically extends the analysis of investment strategies of financial institutions to four most important divides in the Nigerian financial system, namely, the commercial banks, merchant banks, insurance companies and finance houses.


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AN EVALUATION OF THE ROLE OF DISCOUNT HOUSES IN THE NIGERIAN FINACIAL SYSTEM

functions of discount houses in nigeria

As Falegan 1993 observed, these houses served three major purposes. A long period of market presence, obviously, but much are they known and to what extend are their services known about? The first community bank commenced operation in December 1990. The two others joined later, beginning operations in 1995 and 1996. It also becomes evident that discount houses enjoy a very high level of awareness amongst other financial actors especially commercial and merchant banks. To regulate the in the economy, the Bank conducts which involve expanding or contract the volume of assets held with the Bank. With trained staff to run their investment desks, you have everything to gain from seeking guidance from these market actors. Because we strive here to highlight opportunity areas for our readers to tap into, this article is an effort at showcasing the services of discount houses and the areas where ordinary folks can take advantage.

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