Section 27: Role of participating banks

A participating bank shall be charged with the responsibility of-(a) managing the funds allocated to it by the Board for purposes of implementing the objective of the Programme;
(b) approving loans to applicants in compliance with such credit guidelines as may be issued by the Board from time to time;
(c) advising the Board on the operation of the Programme and on any matter pertaining to the effectiveness and efficiency of the Programme;
(d) supervising and monitoring the projects undertaken by beneficiaries of loan facilities under the Programme and recommending appropriate corrective measures where the terms and conditions of loans have not been met;
(e) ensuring loan recovery in accordance with loan recovery schedules;
(f) determining the potential of factors affecting the cottage industries;
(g) meeting quarterly with members of the State, Federal Capital Territory, Local Government and Ward Co-ordinating Committees to assess the impact of the Programme and recommend remedial action to the Board and the National Technical Advisory Committee;
(h) submitting quarterly reports on loan disbursement and recovery to the Board and the National Technical Advisory Committee and make copies available to the State, Federal Capital Territory, Local Government and Ward Co-ordinating Committees.