Summary |
A development bank is a multipurpose financial institution. Besides providing financial aid it undertakes promotional activities also. It helps enterprises from planning to operational level. It primarily aims to accelerate the rate of growth. It helps industrialization specific and economic development in general. A development bank has the opportunity to promote enterprises ie to conceive investment proposals and to stimulate others to purpose them or it to carry them through, from ‘conception’ to ‘realization’. In principles, a development bank is well suited to assume this kind of role. Yet, enterprise creation is fraught with costs and risks which development bank cannot neglect. Development banks can prudently undertake them only when they have the requisite financial strength, technical expertise and the managerial skill to bank.
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