One of the functions of Development Banks is to provide medium and long-term finance for the development of the economy.
Development Banks are financial institutions that are established with the specific purpose of promoting economic development in a country. They provide funding for various development projects that are aimed at improving the infrastructure, industry, and overall economic growth of a country.
Unlike commercial banks, which primarily provide short-term loans, Development Banks provide medium and long-term finance that can be used for a wide range of development projects. These can include funding for infrastructure projects such as roads, bridges, and power plants, as well as financing for small and medium-sized enterprises (SMEs) and other businesses that are involved in economic development.
Development Banks typically have a mandate to promote sustainable development and may focus on areas such as renewable energy, environmental protection, and social development. They may also provide technical assistance and other support to help ensure the success of the projects they fund.
In summary, one of the main functions of Development Banks is to provide medium and long-term finance for the development of the economy, which can help to promote economic growth and improve the standard of living for people in a country.