IMPACT OF COMMUNITY BANKING ON RURAL DEVELOPMENT

IMPACT OF COMMUNITY BANKING ON RURAL DEVELOPMENT

ABSTRACT

This study deals with the impact of community banking on rural development. In recent past, our rural dwellers have been finding it very difficult to save their money and other valuables in the commercial banks in urban area.  This is because of the long process involved in opening a savings account and also distance in moving from where they are living to an urban location of commercial banks. This research work is presented in five chapters. The first chapter started the problems which are to be appraised, the reasons for studying this work and those who will benefit from this work.  Relevant theoretical and empirical literature, which relate to present study were reviewed in chapter three.  Chapter four deals with presentation analysis and interpretation of data.  The last chapter that is chapter five deals with the summary of the research findings, conclusion and recommendations. Since the introduction of community banks, this problem has been solved especially for our rural dwellers.  They now find it easy to open up savings and current account in these community banks rather than keeping the money under their beds or loosing them to termites or ants.

CHAPTER ONE

INTRODUCTION

1.1  STATEMENT OF THE PROBLEM AND OBJECTIVES OF THE STUDY

The role of banks in the process of economic development of Nigeria just like other nations of the world is very enormous.  It mobilizes funds from the surplus spending unit in the economy, and lends such funds to the spending unit for investment. Suffices this to say that setting of banks in rural areas as otherwise named the community banks is a tool towards achieved economic growth, like hospitals, good roads companies market schools employment and agriculture.  Hence the problem of this study is to appraise the impact of established community banks on the establishing of agricultural programmes and employment of rural dwellers.  It is also aimed at exploring the weakness of some areas at exploring the weakness of some areas in the implementation of the programme.

1.2  REASONS OF THE STUDY

The main reason for the study is to appraise the performance of the established community banks with a view to highlighting its effectiveness, arousing banking interest among rural dwellers.  This study is important in the sense that it brings development to the rural areas in so many ways.  The community banks help to educate the local communities the need or importance of banking services. It is also encourage the local community to save that is to accumulate capital for small-scale investment, provide the banking needs for the local market women, farmers and petty traders. Furthermore, community banks helps the rural people in depositing of money in the banks, through the community banks the rural people can obtain short-term loans for economic activities.  Without these loans the rural people and the businessmen will find it difficult to finance their business. Through the development of community banks, long and medium term loans can also be obtained for development purposes by businessmen.