VALUATION AND BREAKS
The balance sheet of discount houses shows the liabilities and assets of the discount market prior to 1996.
The data are available monthly for the period 1976-1996.
The balance sheet of discount houses shows the liabilities and assets of the discount market, which as at end-December 1996 comprised seven authorised money market dealing counterparties of the Bank of England, namely:-
Alexanders Discount plc
Cater Allen Ltd
Clive Discount Company Ltd
Gerrard & National Ltd
King & Shaxson Ltd
Seccombe Marshall and Campion plc
Union Discount Company Ltd
VALUATION AND BREAKS
Before May 1975 this group comprised the London Discount Market Association. From that date until 1980, figures for the two discount brokers and the monetary trading departments of 'listed' banks carrying out an essentially similar type of business were also included. In the other periods the money trading departments were included indistinguishably within the figures of their parent banks, in the aggregate banking sector balance sheet.
New statistical returns were introduced in May 1975. From then, the definition of certain items was not fully consistent with earlier dates.
The undefined assets restriction lapsed on 20 August 1981, when a new system of monetary control replaced the arrangements for credit control introduced in 1973. Undefined assets for that purpose were all assets other than the following:
(a) balances at the Bank of England;
(b) UK and Northern Ireland Treasury Bills;
(c) government stocks with not more than five years to final maturity;
(d) local government stocks with not more than five years to final maturity;
(e) local government and other public boards' bills eligible for discount at the Bank of England;
(f) local government negotiable bonds; and
(g) bank bills drawn by nationalised industries under specific government guarantee.
Until 7 May 1980, each institution's aggregate holdings of 'undefined assets' was limited to a maximum of twenty times its capital and reserves; with effect from that date, the maximum was raised to twenty-five times capital and reserves.
Bank of England (1973), 'Competition and credit control; modified arrangements for the discount market' Bank of England Quarterly Bulletin, September, pages 306‑307.
Bank of England (1981), 'Monetary control - provisions' Bank of England Quarterly Bulletin, September, pages 347‑350.