Development banks are specialised financial institutions which provide long-term credit or loan 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 (N.I.D.B.), Nigerian Bank for Commerce and Industry (N.B.C.I) and Nigerian Agricultural and Co-operative Bank (N.A.C.B).
Functions of development banks
- Provision of fund for capital projects: Development banks provide long-term loans for capital projects in specific areas.
- Manpower development: They contribute to manpower development by making funds available to manpower training institutes.
- Implementation of government policies: Development banks also help to implement government policies on industrial, commercial and agricultural development.
- Render special advice: Development banks also advise the industrialist on the surest or best way to invest.
- Supervision of development projects: They help industrialists and other investors to supervise development projects in order to ensure their success.
- They underwrite security: Development banks also underwrite security issues.
- They undertake research: Development banks do undertake research to determine viable areas to develop industries.