The content is just an excerpt from the complete note for SS2 Third Term Commerce Lesson Note – Banking: Specialized Banking. Check below to download the complete DOCUMENT
WEEK 3
TOPIC: Banking
CONTENT: (a) Specialized Banking
- Development Bank
- Mortgage Bank
- Building Society
Sub-topic 1: Development Bank
Development Banks are specialized 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 Cooperative Bank.
FUNCTIONS OF DEVELOPMENT BANKS
- Development Banks provide long term loans for capital projects in specific areas.
- They make funds available to manpower training institute.
- They also help in implementing government policies on industrial, commercial, and agricultural development.
- Development Banks gives advice to the industrialist on the best way to invest.
- They supervise industrial project in order to ensure the success of the project.
- Development banks also underwrite security issues.
- They undertake research to determine viable areas to develop.
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.
To gain full access to the note: DOWNLOAD FILE
