Developmental Functions of The Central Bank:

These are activities of the Central Bank to promote growth in various sectors of the economy.

(i) Promotion of the growth of financial markets: The Central Bank usually initiate instruments of mobilizing short-and long-term funds in both the money and capital markets.

(ii) Promotion of development of financial institutions: The Central Bank participates actively (morally and financially) in the establishment of development banks e.g. Bank of Industry (BOI) and Nigeria Agricultural Co- operative and Rural Development Bank (NACRDB) in Nigeria, as well as non bank financial institutions including the Stock Exchange.

(iii) Human capital development: The Central Bank participates directly and indirectly in the training of manpower for the banking industry. For example, in Nigeria, the CBN is involved in the activities of the Chartered Institute of Bankers of Nigeria (CIBN) and the Financial Institution-Training Centre (FITC).

(iv) Establishment of special schemes and funds: The Central Bank promotes special schemes and funds in the areas of agricultural finance, export development and small and medium scale enterprises so as to enhance economic development. Examples in Nigeria include the Agricultural Credit Guarantee Scheme Fund (ACGSF) and Small and Medium Industries Equity Investment Scheme (SMIEIS).

(v) Sources of data for research: Through its regular publications, the Central Bank provides information on financial indices and indicators for use in research and development (R&D) efforts.