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SPECIALIZED BANKING
CONTENT
- Development Banks
- Mortgage Banks
- Building Societies
Development Banks
Development Banks are specialised financial institutions which provide long term credit or loans to other enterprises for capital projects. They provide loans for projects in the area of agriculture, commerce, and industry. Examples of development banks in Nigeria are; Nigeria Industrial Development Bank, Nigeria Bank for Commerce and Industry and Nigeria Agricultural and Co operative Bank.
Functions of Development Banks
The following are the functions of development banks:
- Development Banks provide long term loans for capital projects in specific areas.
- They make funds available to manpower training institute.
- They also help in implementing government policies on industrial, commercial, and agricultural development.
- Development Banks gives advice to the industrialist on the best way to invest.
- They supervise industrial project in order to ensure the success of the project.
- Development banks also underwrite security issues.
- They undertake research to determine viable areas to develop.
EVALUATION
- (a) What do you understand by the term Development Bank (b) Explain the function of a Development Bank
Mortgage Banks
Mortgage banks are financial institution that specialise in granting loans to individual and corporate bodies for building purposes.
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