Categories: Lesson Notes

SS2 Commerce Lesson Note on Specialized Banking

The website has the complete lesson note for all the subjects in secondary school but this piece showcases the SS2 Commerce Lesson Note on Specialized Banking. You can use the website search button to filter out the subject of interest to you.

CLICK HERE to download the complete Document: DOWNLOAD HERE

TOPIC: Banking

CONTENT:   (a) Specialised Banking

                        (i) Development Bank

                        (ii) Mortgage Bank

                        (iii) Building Society

 Sub-topic 1: Development Bank

Development Banks are specialised financial institutions which provide long term credit or loans 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, Nigeria Bank for Commerce and Industry and Nigeria Agricultural and Co operative Bank.

FUNCTIONS OF DEVELOPMENT BANKS

  1. Development Banks provide long term loans for capital projects in specific areas.
  2. They make funds available to manpower training institute.
  3. They also help in implementing government policies on industrial, commercial, and agricultural development.
  4. Development Banks gives advice to the industrialist on the best way to invest.
  5. They supervise industrial project in order to ensure the success of the project.
  6. Development banks also underwrite security issues.
  7. They undertake research to determine viable areas to develop.

EVALUATION

1a. What do you understand by the term Development Bank

1b. Explain the function of a Development Bank

Sub-topic 2: Mortgage Bank

Mortgage banks are financial institution that specialise in granting loans to individual and corporate bodies for building purposes. Such loans are repaid by instalments and can be spread over several years.

Mortgage banks accepts deposit from investing public at a rate of interest and use the fund to lend, at a higher rate of interest, to people who wish to own their houses.

The Federal Mortgage Bank was established to encourage people to save in order to own a house. It is the apex bank that is charged with the responsibility to supervise other mortgage banks.

FUNCTIONS OF MORTGAGE BANK

  1. Mortgage banks accept deposit from customers in order to encourage savings towards owning a house.
  2. They can provide long term loans to people or developers to build houses

Click on the Downloadable Button to get the FULL NOTE

Sunday

Share
Published by
Sunday
Tags: Lesson Note

Recent Posts

List of Universities Offering Veterinary Medicine in Nigeria

Veterinary medicine is the branch of medicine that deals with the prevention, diagnosis, and treatment…

4 months ago

List of Universities Offering Anthropology in Nigeria

Anthropology is the scientific study of human beings and their cultures. It encompasses a wide…

4 months ago

List of Universities Offering Sociology in Nigeria

Sociology is the scientific study of human society, culture, and behavior. It examines the social…

4 months ago

List of Universities Offering Social Work in Nigeria

Social Work is a profession dedicated to helping individuals, families, and communities to cope with…

4 months ago

List of Universities Offering Religious Studies in Nigeria

Religious studies is an academic discipline that explores the beliefs, practices, and history of various…

4 months ago

List of Universities Offering Public Administration in Nigeria

Public administration is the field of study and practice that focuses on the organization and…

4 months ago