Development banks and their functions

DEVELOPMENT BANKS

Development banks are specialized financial institutions which provide long-term credit o’ loan to other enterprises for capital project?

They provide loans for projects in the area of agriculture, commerce and industry.

list of development bank

Examples of development banks in Nigeria are Nigeria. Industrial Development Bank (N.I.D.B.), Nigerian Bank for Commerce and Industry (N.B.C.I) and Nigerian Agricultural and k)-operative Bank (N.A.C.B).

Functions of development banks

Provision of fund for capital projects:

  1. Provision of fund for capital projects: Development banks provide long-term loans for capital projects in specific areas.

Manpower development: They contribute to manpower development by making funds available to manpower training institutes

Implementation of government policies: Development banks also help to implement government policies on industrial, commercial and agricultural development.

Render special advice: Development banks also advise the industrialist on the surest or best way to invest.

  • Supervision of development projects: They help industrialists and other investors to supervise development projects in order to ensure their success.
  • They underwrite security: Development banks also underwrite security issues.

  • They undertake security: Development banks do undertake research to determine viable
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