What is Development Banks?
A development bank is a financial institution specifically established to provide long-term capital investment in specific productive areas of the economy such as Industry, Agriculture and Commerce e.g. Nigerian Bank for Commerce and Industry (NBCI), Nigerian Agricultural and Co-operative Bank (NACB), Ghana National Investment Bank, (GN 13), etc.
Functions of Development Banks
- Provision of long-term capital for investment: They provide long-term capital investment.
- Offering financial and technical advice to investors: They have experts in various fields who provide the advice investors may require in order to run successful businesses.
- Direct investment in productive sectors: They may can’t out investment in areas such as industry, agriculture and commerce either wholly or in joint partnership with other investors.
- Conducting studies or research on the economy: They carry out research or studies in the relevant areas of the economy.