The functions of a development bank and the reasons for referring to the central Bank as a government banker were not known by many candidates.
(a) The key function of a development bank are:
Investment advice and conducting feasibility studies;
- Management of projects;
- Provision of equity capital and underwriting security issue
- Undertaking of research.
- Reasons for referring to the Central Bank as a Banker to government
Holds government deposits;
- Payment on behalf of government;
- Manages the national debt;
- Issues currency on behalf of government;
- Manages country foreign resources;
- Govern representative at IMF and other International finance organizations.
|
