DEVELOPMENT BANKS are banks specially established to promote the development of various sectors of the economy. They provide medium and long-term loan for capital projects in Agriculture, Commerce and Industry and other essential projects necessary for economic development of the country. The premier development banks are viz:
- Nigerian Industrial Development Bank (NIDB): This bank makes provision for medium and long-term loan to the industrial sectors of the economy e.g. Mining, manufacturing and construction industries.
- Nigerian Agricultural and Co-operative Bank (NACB): This bank is solely established to cater for the agricultural sector of the economy. They make provision, for adequate credit facilities aimed at promoting agriculture and other co-operative societies.
- The Bank for Commerce and Industry (NBC).
FUNCTIONS OF DEVELOPMENT BANKS
Help in promoting the capital market of the economy of a country.
Help in facilitating industrial development through rendering financial assistance to them. Help in making provision for medium and long-term loan to companies and other corporate bodies. Help in offering technical advice to firms and other business organizations.