MERCHANT BANKS

MERCHANT BANKS – These are specialized banks charged with the responsibility of accepting bills of exchange, issuance of loan for foreign trade transactions etc.

FUNCTIONS/IMPORTANCE

1. They assist in the sale of shares to the public
2. They act as financial advisers to their industrial client.
3. They make provision for fixed interest medium term loans to their clients.
4. They finance and execute bills of exchange and tellers of credit used in international trade. 
5. They also assist in the indigenization exercise in Nigeria.
6. They circulate bills o exchange used for international trade.