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.