Accounting technicians scheme west africa
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- Thrift and Credit Cooperative Society
- Roles of Thrift and Credit Cooperative Society
| Discount Houses These are the institutions that specialize in the provision of discounting facilities that is, buying and selling of securities that is, buying and selling of securities especially government securities. They also discount bills for banks and save them the rigor of going to the Central Bank. They also issue their own securities to the bank as a means of raising funds. Thrift and Credit Cooperative Society The purpose of this type of society is to mobilize savings from the members so that the needy members can borrow at minimum interest rate. They meet regularly say monthly and contribute 272 an agreed amount of money to the purse of the association. This type of society is like savings cub and usually found among traders, artisans and peasant farmers. Roles of Thrift and Credit Cooperative Society a) Members obtain loans easily without collateral to boost their trade. b) It is a means of encouraging savings among members. c) It is a means of mobilizing capital for members. d) They offer free advice to their members during their monthly meetings. e) They often make it easy for their members to own real properties by buying land with the cooperative money at lower prices and distribute it to them. D.6 The Capital Market The capital market refers to a collection of financial institutions setup for the purpose of granting long-term loans. It is a market for long-term instrument which include market for government securities, market for corporate bonds, market for corporate shares (stocks) and market for the mortgage loans. The capital market is composed of the primary market (market for new securities) and the secondary market (including insurance companies, building societies, saving banks and other bodies not directly concerned with the issue of new securities, but which are engaged in the business of long-term borrowing and lending upon which the issue of new securities depends. Download 3.37 Mb. Share with your friends:
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