Accepting Houses Committee
Definition
Formerly, a committee representing the main accepting houses in the City of London. Members of the committee were eligible for finer discounts on bills bought by the Bank of England, although this privilege was subsequently extended to other banks.
Example
Example 1:
Similar to how CBN sometimes gives preferential treatment to certain primary dealer banks in Nigeria’s money market, the Accepting Houses Committee gave its elite London members better discount rates until the privilege was eventually opened up to everyone.
Example 2:
In postwar London, being a member of the Accepting Houses Committee was a mark of prestige, it meant your bills were discounted at the best rates by the Bank of England, giving member institutions like Morgan Grenfell a significant competitive edge over ordinary banks.