Development Bank

DEVELOPMENT BANK

A development bank is a bank specifically established to provide long-term finance (loan) for various development projects, which help to accelerate economic development.

Examples of development banks are the Nigerian Bank for Commerce and Industry (NBCI) (1973), Nigerian Industrial Development Bank (NIDB) (1964), the Nigerian Agricultural and Co-operative Bank (NACB) (1973) etc.

FUNCTIONS OF DEVELOPMENT BANKS

1. Provision of Fund for capital project: Development banks provide long-term loans for capital projects in specific areas.
2. Manpower development: They contribute to manpower development by making funds available to manpower training institutes.
3. Implementation of government policies: Development banks also help to implement government policies or industrial, commercial and agricultural development.
4. Supervision of development projects: They help industrialists and other investors to supervise development projects in order to ensure their success.
5. They undertake research: Development banks do undertake research to determine viable areas to develop industries.

Assignment (Post your answer and question title using the box below for evaluation and discussion)

State three (3) functions of development bank.