This project work was about the impact of
community banking on the economy of Nigeria: a case study of Auchi community
bank. In undertaking this project work research questions were administered to
both respondents and staff of the bank from the study it was confirmed that the
respondents were aware of the community bank of Auchi. The services offered by
the bank were provision of credit facilities keeping valuables, credit deposit
Background to the study
Statement of problem
Objectives of the study
Significance of study
Scope of the study
Limitations of the study
Definition of terms
Review of related literature
Objectives of community banking
Problems of community banking system
Solutions to the problems
Methodology and procedure of study
Population of the study
Sampling of the study
Sample technique adopted
Method of data collection
Method of data analysis
Presentation of data and discussion of results
Summary, Conclusion and Recommendation
BACKGROUND TO THE STUDY
bank in Nigeria is self-sustaining financial institution owned and managed
within a community to provide financial services to that community. The
national board for community banks (NBCB) processes applications for the
establishment of community banks. The first community bank commenced operation
in December 2000 since then NBCB has issued provisional license to 1, 366
community bank and are expected to be issued final licenses by the CBN after
operating for two years. As at the end of December, 2002 there were 90 licensed
insured banks, 282 licensed community banks 74 licensed primary mortgage
institutions and 6 development financial institutions (DFLS). All these
institutions (within the exception of DFLS) take deposit from members of the
public in one form or the other. However, for all purpose, the universal banks
constitute the hub of the banking and in fact, the financial services industry.
The community banks are unit banks by design and expected to focus on small
savers in their host community. The rural areas almost 75% of Nigeria
contributed substantially about 92% of the nations agriculture products knowing
well of this visible and immeasurable contribution the rural dwellers who are
predominantly farmers are denied of any government support in terms of
increased institutionalization of agricultural credit, concessionary interest
rate policy, flexible condition on borrowing incentive to farmers,
decentralization of institutional agencies, improved credit system, great
reliability in supply of agricultural credit, negative action against
defaulting credit institution.
From the above, this research will be carried out under an
investigative analysis on what reform the federal government is enunciating the
community banking programmes in the rural community which will be followed by
an identification of all allied strategies and their relevance to the revamping
of the dwindled rural economy in the face of the deregulation of the Nigerian
economy. It is necessary to study how the non institutional financial sector
complements the current development strategies. This study also intend to
evaluate the challenges inherent in the operations of the community
STATEMENT OF PROBLEMS
Despite the recognition given to grass root operators by the
government through the establishment of the community banking programmes it
appears that such gestures is yet to be accepted by the rural operators. And on
the other hand, informal financial sector has not received any support even
when it clamors for such obviously because of the emergence of the problems
ridden development strategies or programmes. Some people have jointly expressed
their view over the government reckless neglect of the informal financial
institution. The institutions are consistently starved of funds and it limits
the scale of economic activities. It can support and it is equally believed
that inadequate liquidity and difficulty in identifying the structure of
interest rates are some of the problems facing the institution.
Gain (1991) holds that the establishment of development programmes
aimed at rejuvenating from it limbo, the rural sectors by the stampeded
Babangida’s administration is nothing but a ruse to hood work and mislead the
innocent, the aggrieved and the oppressed. According to Solarin, community
banking is a window dressing that lack substance. The he seriously believed
that the programmes were more conceptual expression existing only in the
contemplation of government imagination.
PURPOSE OF STUDY
Among the objectives of this study are:
To appraise the community baking in the development of Nigeria economy in Auchi
To suggest ways of improving on community banking in the study area.
To find out if the financial need of the rural operations are adequately
To know how the record priorities in terms of investment activities.
This study will be guided by the following:
What are the services your bank provides for Auchi area?
What are the problems of community rural banking in the area?
How does your bank facile these problems?
SIGNIFICANCE OF THE STUDY
This study will be of importance to the community banks because it
will enable community banks to adjust their credit delivery system to match the
environment situation and circumstance of the rural operations. The study will
be useful to government and the credit seekers because it will enable
government to create a new orientation and initiate measures to sanities the
operations of the existing programmes and then express credit seeker to many
source of short term fiancés. Finally the study will help future researchers
as in areas of seeking information.
SCOPE OF STUDY
The study was the impact of community banking on the economy of
Nigeria: a case study of Auchi community bank, Auchi. The study among other
things covers the antecedent to community banking, nature and characteristics
of the informal savings pattern. The study also covers the expected roles of
community banks to rural development, the emerging peculiarities and the
complementary of community banks with informal units.
DEFINITION OF TERMS
Bank: It is
an organization offering financial services, especially the safe keeping of
Banking is the business of accepting deposits and lending money to customers.
It is a trade like other business concerns because it has customers which are
community “sentiment area” with emphasis upon affective interrelationship or it
is a group of any size whose member’s ahs a consciousness of living a common
life and sharing common destiny.
Development can be seen as a change from one state to another to the extent
that the new state is different from the formal in terms of developing.
TERMS AND CONDITIONS APPLY
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