Advantages of development financial institutions, Finance Basics

Advantages of Development Financial Institutions

Advantages or Functions or can say Case for Development Financial Institutions

1. They grant venture capital

2. They grant facilities for large lending

3. They grant technical expertise and maintain emerging projects moveable from other sectors of development economies.

4. They are risk capital providers in areas that are not attractive to commercial banks and other most lenders because of risk included.

5. They carry out feasibility read out to evaluate viability of projects.

Case against Particular Institutions and Development Banks

1. They are being phased out through liberalization and Globalization where needy sectors can easily obtain expertise from outside.

2. Commercial banks contain now matured up to give capital for all sectors.

3. They were only useful throughout periods of foreign exchange restriction

4. They are risk capital contributors in areas that are not attractive to commercial banks and other main lenders due to risk included.

5. They rise government spending.

Posted Date: 2/1/2013 2:01:51 AM | Location : United States







Related Discussions:- Advantages of development financial institutions, Assignment Help, Ask Question on Advantages of development financial institutions, Get Answer, Expert's Help, Advantages of development financial institutions Discussions

Write discussion on Advantages of development financial institutions
Your posts are moderated
Related Questions
FUNCTIONS OF BUDGET THAT MUST BE PRESENT IN THE MUNICIPAL FINANCIAL MANAGEMENT AND INDICATE HOW THESE FUNCTIONS CAN INFLUENCE MUNICIPAL FINANCIAL MANAGEMENT

A bond that has $1000 face value and a contract interest rate of 11.4%. The bonds have a current value of $1124 and will mature in 10 years. The firms marginal tax rate is 34%. The


Maghrabi Enclosure follows a moderate current asset investment policy, but it is considering whether to shift to a different strategy.  The firm's annual sales are $500,000; its fi

Question: a) Lucy who plans to retire in 18 years has decided to save money in the bank at the beginning of each month until her retirement, with each subsequent saving incre

Explain Mechanics of security trading in Stock Exchange Introduction: An investor should have some knowledge of how the securities markets operate. Marketing of old or new se

An insurance company offers you and end of year annuity of $48,000 per year for the next 20 years. They claim your return on the annuity is 9%. What is the most you would be willin

Question: A non-zero coupon bond carries a coupon rate of 8 percent and has 9 years until maturity. It sells at a yield to maturity of 6 percent. The par value of the bond is

Drawback of Stock Repurchases 1. High price A company may find it not easy to repurchase shares at their recent value and price paid may be higher to the detriment of rem

In order to value a debt security correctly, we must understand the terms and conditions of debt securities precisely. These terms define the contractual rights of the debt securit