Corporate Social Responsibility vs Profit Maximization
CHALLENGES FACING NIGERIAN DISCOUNT HOUSES IN THE MEDIUM TO LONG TERM ABSTRACT The paper traced the emergence of discount houses to the need for an institutional arrangement for the facilitation of the trading in short-term securities at both the primary and secondary segments of the money market. The British example was seen as the model with countries under the British influence including Ghana, Zimbabwe, and Nigeria adopting the system to deepen, the money market. The discount house operations in Nigeria had reflected mixed developments with their fortunes declining due to some environmental factors as well as factors internal to the houses. The need for the discount houses to reposition their activities in the medium to long term was emphasized. The challenges confronting the houses call for proactive management on the part of the houses and creation of a more conducive operational environment by the regulatory authorities. The paper concluded by indicating that in the long run, the efficiency and competence of the houses in the discharge of their responsibilities would determine their relevance and survival rather than imposition of assigned areas of specialization through guidelines.
1.
INTRODUCTION
however, the emergence of discount houses as major operators in the money markets of some economies has often been as a result of the need for institutional support to foster the growth of an active money market, deepen money market transactions and promote active trading in private sector financial instruments. In Britain, which is generally regarded as the origin of discount houses, these institutions evolved to provide a link between the banks and the Bank of England by serving as a channel for the interchange of banks’ funds as well as providing access to the Bank of England as a lender of last resort.
In other countries where discount houses are in operation their immediate preoccupation at inception have always been the development of money
1.
INTRODUCTION
however, the emergence of discount houses as major operators in the money markets of some economies has often been as a result of the need for institutional support to foster the growth of an active money market, deepen money market transactions and promote active trading in private sector financial instruments. In Britain, which is generally regarded as the origin of discount houses, these institutions evolved to provide a link between the banks and the Bank of England by serving as a channel for the interchange of banks’ funds as well as providing access to the Bank of England as a lender of last resort.
In other countries where discount houses are in operation their immediate preoccupation at inception have always been the development of money
References: 1. Bank Nagara, Malaysia (1994), Money and Banking in Malaysia 4th Edition 2. Bank of Ghana (1998), Revised Guidelines for the Operations of Discount Houses in Ghana, Accra 3. Central Bank of Nigeria (1992), Revised Guidelines on the Operations of Discount House in Nigeria, Abuja 4. Ezeuduji, Babalola and Adegbite (1998), Nigeria Discount Houses – Performances, Problems and Repositioning, Economic and Financial Review Vol. 36, No. 2 – June, 1998 5. Monetary Authority of Singapore (1980): The Financial Structure of Singapore, Revised Edition 6. Nigeria Discount Market Association (1997) Proposal for the Review of the Guidelines for Discount Houses, Lagos 7. Ogunleye, G.A. (1992), Report on Familiarization Visit to Bard Discount House, Zimbabwe 8. Revell, J. (1973), The British Financial System, Macmillian Press Limited.