Overview

In Malawi, discount houses have been a part of the financial landscape since 1998 when Continental Discount House was granted a license. Later, in 2001, First Discount House also received a license. However, as of now, only one discount house remains operational following the conversion of Continental Discount House into a commercial bank in 2011.

Discount houses serve as specialized money market institutions that focus on trading, discounting, and negotiating bills of exchange or promissory notes. Their primary purpose is to enhance liquidity in money market instruments and promote the development of secondary markets. Supervision of discount houses falls under the purview of the Bank Supervision Department. Nevertheless, discount houses are subject to distinct capital requirements that reflect the nature of their business and sources of funding. Furthermore, they adhere to different reporting requirements in comparison to banks due to the unique aspects of their operations.