PROCEDURE FOR THE ESTABLISHEMNT OF COMMUNITY BANKS.
SUMMARY OF FINDINGS
This chapter is mainly
concerned with the efforts at
expanding the economic base of
the rural area which are always backwards because of scarcity of and
restrictive access to loanable funds. In solving the problem, previous
government in their economic policies have lied on development banking and rural
branch banking of orthodox banks. The word Community Banking is defined
as a self sustaining financial institution owned by a community or a group of
communities. Unlike commercial banks, community banks were established
mainly to promote productive activities in the rural area. Specially,
they are meant to facilities the programmes of directorate of food, roads and
rural infrastructural producers.
Community bank has no other branch because it is established to operate within
a community alone. It is well known that 75 percent of the country’s
resource and ownment are in the rural areas. So our development project
and programme can not achieve any appreciable improvement until this is focus
on those rural areas.
1.1 BACKGROUND OF THE STUDY
The federal government of Nigeria 1990 budget speech decided to establish
community bank in order to strengthen its programmes of grassroots economic
development. The fundamental concept of a community banks is of a
self-sustaining financial institution, owned and managed by a community for the
purpose of providing credit deposit, banking and the service to its
members. It is designed to ensure that a community may establish a
community bank for the purpose fo promoting rural development throughout the
provision of finance and banking service improving the economic status of small
scale producers both in the rural and urban areas, enhancing the rapid
development of production activities especially in the rural economic growth in
Nigeria. A bank licensed under the community bank decree shall accept
from persons various types of deposit including savings and time savings.
Receive or collect money on
behalf of its customers, operate equipment leasing facilities which is designed
to ensure access of its customer to farm input. Community bank in Nigeria
banking system dates back to 1990 when the budget speech was delivered by the
president commander in Chief of the Armed Forces, General Ibrahim Babangida.
OF THE PROBLEM
The statement of the problem
include the following: -
How can loanable funds made accessible to rural borrowers to enhance their
How can the loan be secured other than asking for tangible security like
How rural banking habit can be improved to assist I rural development?
OF THE STUDY
The studies conducted by the
researcher on the role of
community banks in rural
development reveals that the objective of the study includes the following: -
To determine how rural dwellers had responded to the services of community
to identify the type of customer that patronize community banks.
To determine the type of services that are rendered to the public by the
To ascertain the extent to which granting of loan to rural dwellers has any
effect on unemployment level.
To determine any ther non-banking services that are rendered to the public by
the community banks.
To examine if the availability of the loan has reduced the level of rural urban
OF THE STUDY
This research work will be of
immense help to the
government especially the rural
development authority, as it will give them the opportunity to assess their
performance in rural development. It will also be a great value to the
community banks to assess their performance.
Hence, it will be beneficial to the generality of the public. It will
also be of a great importance to people carryout research in related
topic. The study is as much as it attempt to achieve the purpose of
promoting the rural development by providing financial and banking services,
credit and deposit services as well as other facilities. It is also to
achieve the festering of the spirit of community ownership and of economic
assets and its maintenance on a suitable basis. To the economy at large,
this study is of a great value since rural development involves providing those
social amenities in the urban area to the rural area. This to some extent
restrict the usual movement. Restriction will lead to the promotion of
rural financial and banking services and integrated national financial system
that responds to the need of the whole economy.
For the purpose of this
research work, the definition of
terms used with the UN Standard
Industrial classification of economic activities.
1. Economic: Is the study of how a society
organizes its money, in order to encourage its nation.
Areas: In a
little communities that is not as larging like the city
3. Community: Is all the people living in a
Bank: Is a self
sustaining financial institution owned by a community or a group of community.
5. Loanable: This is the money that can
organization such as a bank lend out money.
6. Funds: Is the amount of money that has been
saved or that has been made available for a particular purpose.
TERMS AND CONDITIONS APPLY
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