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Development banks differ from commercial banks in many respects. Commercial banks provide credit for short term. They focus on the working capital needs of trade and industry. On the other hand, development banks provide finance for medium and long term. They focus on the fixed capital needs of industry and trade. They provide fiancé for expansion, diversification and modernization of business firms. Commercial banks are oriented towards security whereas development banks are oriented towards projected. Development banks give preference to development of new entrepreneurs and promotion of balanced regional development. In fact development banks were established because commercial banks and other financial intermediaries could not meet the needs of industry.