What is the role of banking in industrial development?

Answer 1

Commercial banks are granting loans and advances to all the industries based on their feasibility study report. RBI is issuing the prior sectors to be concentrated based on that the commercial banks may decide about the industry to be financed more. Apart from this even the banks are giving guidance to start a business. Expert advice also can be had from the banks.

Answer 2

A bank can extend credit to an entrepreneur, which allows him or her to be able to start with more purchasing power than with cash alone. Also, it's a place to deposit and manage cash and other types of accounts. In addition, there might be agents at the bank that specialize in helping entrepreneurs to make a plan for their finances so that they can succeed.

Answer 3

Banking plays various roles pending the size of the bank and the nature of the investment. Also, if local municipal level, foreign and or global interests/government interests are involved with industrial development. At a municipal level a zoning of area for industrial business must be enacted. Usually a municipal will either self support and or acquire grant funding at either state or federal levels. The banks usually act as holding and reporting agents for the money's allocated and must have the proper approval to deal with non-for-profit reporting in bank transactions used as a third party reporting agent. Other times they act as agents in bond share sales for funding industrial development in an area.

If global interests are involved then the matter gets more complicated with state, federal regulations so normally either a major national bank or international bank with license to deal in foreign currency adjustments as well as accounting/reporting international standards are required. In some cases the U.S. and or local state treasury is involved as well as tax regulating agencies if industrial bonds are issued to finance industrial development per a municipal desire attract new business to the region for economic development. Some of these bond features may enact both non-taxable earnings at either a local or state level. Banks can also back these investments for a stake or share in returns on these new economic developments.

It varies region to region or even nations involved but first and foremost most banks do place bids and approvals to play apart of economical development and must perform per limitations and restrictions placed such as economic development standards in finance management and reporting for tax allocation as well as accurate reporting of funds transfers via several financial supporting forces either independent investors buying bonds, corporate investments, government investments and still maintain the requirements of regulating bodies such as the IRS, State or local tax department, SEC and etc.

• Municipal Bonds - tax free investments at local tax or state level pending approval
• State Bonds - tax free investments at state level (void of state taxes upon cash value returns)

The most commons is operations of a temporary accounts by funds from grants and the checkbook payments for use in reporting is much more detailed in most cases they have a pre-release schedule of funds as soon as approvals are met in states of development. With original contractor bids in which case some banks act as analysts of bids weighting plans of development and the cost estimates as moderators in approval for some smaller municipals seeking to engage in developing their own industrial commercial zones. While other banks enable an access of global companies expanding into regions in outsource industrial operations financing.

• Some bids for contractors enabling development may be accepted via the muncipal & the bank pending if a bank's analyst are used to weight bids accuracy for projected costs and time schedules. As some municipals hire banking agents for this evaluation in contract approvals of the finances needed to complete industrial development projects.

• The most compelling works are usually in enacting as marketing agents to collect capital investments for developing the base infrastructures enabling a region to have it's own industrial commerce zone. Only a few banks engage in this work and even have the access to garner investments from foreign investors and even governments. Some even have staffed grant writers and developers per hire this is common in some international banks aiding outside foreign investments.

• Again this varies pending the type of industrial commerce a region wishes to develop whether manufacturing, processing local raw resources and it's restraint such as is this a regional based business or a major global business engaged in imports and exports.

Answer 4

saif