The role of the Discount House in the development of a money market

A discount house is a financial institution with the aim of trading of financial instrument on the secondary market. It assists in creation of other money market instruments other than T-bills, like CP, NCD, etc. Discount houses motivate the secondary market of financial instruments that enables borrowers to raise liquidity. The general objective of this study was the analysis of the role of the discount house in the development of a money market in Rwanda. One discount house was the case of study (CDH Rwanda). The researcher used both the primary and the secondary data and open ended questionnaires and guided interviews were used to collect relevant data. Secondary data was collected from published records during the search for relevant literature on the study variables. The main source of the literature was drawn from textbooks, news papers, journals, reports, magazines and internet sources. The collected data were presented, analyzed and interpreted to derive meaningful results.