THE ROLE OF COMMUNITY BANK IN RURAL DEVELOPMENT OF NIGERIA

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THE ROLE OF COMMUNITY BANK IN RURAL DEVELOPMENT OF NIGERIA

TABLE OF CONTENTS

 

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWLEDGEMENT

TABLE OF CONTENT

 

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

1.2     STATEMENT OF PROBLEM

1.3     OBJECTIVE OF THE STUDY

1.3     SIGNIFICANCE OF THE STUDY

1.4     LIMITAITON OF THE STUDY

1.7     DEFINITION OF TERMS

 

CHAPTER TWO

2.0     REVIEW OF RELATED LITERATURE

2.1     INTRODUCTION

2.2     RURAL BANKING SCHEME IN NIGERIA

2.3     NATURE AND CONCEPT OF COMMUNITY BANKS

2.4     FUNCTIONS OF COMMUNITY BANKS IN RURAL AREA

2.5     WHY MOST COMMUNITY BANKS ARE FOLDING

2.6     PROCEDURE FOR THE ESTABLISHEMNT OF COMMUNITY BANKS.

 

CHAPTER THREE

3.0     SUMMARY OF FINDINGS

3.2     RECOMMENDATION

3.1     CONCLUSION

          REFERENCE

 

CHAPTER ONE

 

1.0            INTRODUCTION

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.

 

1.3            STATEMENT OF THE PROBLEM

The statement of the problem include the following: -

1.                 How can loanable funds made accessible to rural borrowers to enhance their economic activities?

 

2.                 How can the loan be secured other than asking for tangible security like collateral?


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