Discount Houses:

Discount houses are financial institutions which intermediate funds between the

Central Bank, licensed banks and other financial institutions. Their activities include:

i. Mobilizing funds for investment in short-term securities, especially treasury securities and other shor-term financial instruments by providing discounting/re-discounting facilities.

ii. Assisting financial institutions to effectively manage their idle cash balances by bringing together surplus and deficit units in the money market.

iii. Underwriting issues of treasury securities thereby promoting monetary policy objectives.