Need for a Development Bank

Development Bank

• Development banks or development finance institutions are financial institutions that provide long-term credit for capital-intensive investments spread over a long period and yielding low rates of return, such as urban infrastructure, mining and heavy industry, and irrigation systems.
• Such banks often lend at low and stable rates of interest to promote long-term investments with considerable social benefits.
• These banks are different from commercial banks which mobilise and lend for short- to medium-term projects to avoid ....