Merchant Banks: These are specialized banks charged with the responsibility of accepting bills of exchange, issuance of loan for foreign trade transactions. etc.


  1. They assist in the sales 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 of exchange used for international trade



The Mortgage Banks or the Nigerian Building Society (as formerly known) are specialized banks charged with the responsibility of making provision for housing loans to individuals and government as may be demanded for the building of house especially in urban cities.

Note that before these loans are issued out certain conditions must be reached between the mortgagor (clients/borrowers) and the mortgage (lender).


  1. Provision of housing loans to those who may need it.
  2. Help to reduce urban cities housing plight.

3. Help to create better housing facilities.

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