ABSTRACT
This work examined the role of
community Banks in the Rural Development.
This research topic is of five
chapters. The chapter one is telling us the main body which contains the
historical development of the community bank in rural development and the
problems of the study, the objective of the study, significant, delimitation
and limitation of the over all study of the roles of the community banks in the
rural development.
The second chapter is talking
about the review of the related study ie the role of the community banks in the
rural development
The 3rd chapter is
telling us the ways that the information of the methodology also the research
designs. Therefore, it talks on how the result is been known by the researcher.
The chapter four is all about the
project both the summary and finding.
Chapter five basically on the
project topic ie talking about the project topics and chapters in it.
Therefore, it can call recommendation and conclusion.
Finally Bibliography that is the
list of reference that have been written on the chapter one to chapter four.
TABLE
OF CONTENT
TITLE PAGE i
APPROVAL PAGE ii
DEDICATION iii
ACKNOWLEDGEMENT iv
ABSTRACT v
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVE OF THE STUDY
1.4 SIGNIFICANCE OF STUDY
1.5 DELIMITATION & LIMITATION
AND SCOPE
1.6 DEFINITION OF TERMS
CHAPTER TWO
2.0 REVIEW OF RELATED STUDY
CHAPTER THREE
3.0 RESEARCH DESIGN AND
METHODOLOGY
3.1 SOURCES OF DATA PRIMARY AND
SECONDARY
3.2 LOCATION OF DATA
CHAPTER FOUR
4.0 SUMMARY AND FINDING
CHAPTER FIVE
5.0 RECOMMENDATION
5.1 CONCLUSION
BIBLIOGRAPHY
CHAPTER
ONE
1.1
INTRODUCTION AND BACKGROUND OF THE STUDY
Development and continuous
development in a goal which every nation espies to achieve and when it is
achieved every one shares in the glory.
Most nation development tends to
concentrate in the urban arrears but a nation is related highly when its
development extends to the rural areas.
In Nigeria, life in rural areas is
synonymous people are predominantly peasant farmers who produced the highest
percentage of nations food, fire and yet there is no significant development of
the rural areas.
There are no good roads,
electricity, and good water supply among things.
The banking industries help in no
small measure in brining development in any country therefore in a bid to an
extend this development to the rural areas.
The community banking system was
introduced in Nigeria
in 1990.
The proper masses in the rural
areas who are majority involved with agricultural production need finance and
social amenities which are supposed to make their work and life easier,
therefore, there is need for more emphasis to be laid on establishment of
community bank to see if those problems encountered in the rural areas could be
solved and rural exodus brought to a stand still.
Adekanye (1984) his book “Element
of banking†stated that the idea of development bank was established to
increase agricultural output and productivity. The improve efficiency in the
use of scarce land and water resources to enhance more efficiency use of capital
resources.
Equitable distribution of income
all of which gear up to raise the standard of living of the rural population.
The objectives of the community
banking in rural areas are in a null-shell to facilitate the economics
development of rural areas, which is the need for this study. The role of
community bank in rural development.
Some economic believe that the
economic status of any nation depends to a large extend on how effective their
banking industries are. It is in the view of this national reasoning that the
then Babangida’s administration inaugurated the national Board. For community
bank in 1991 which its sole function is to guide and assist communities in
establishing their own bank in their areas.
This measure is geared towards
the use of banking industries in realization and actualization of the
development of much neglected rural areas in the country.
In rural areas most community
banks find it difficult to survive due to lots of factors. Most people in the
rural areas are illiterates and fail to appreciate or acknowledge the
importance of community bank.
They fail to see the community
bank as a solution to most of their problems that rather they place it in the
category of other bank, it is in view of those in the rural areas that the community
banks does a lot more than they think, hence to appreciate. The important for
better economic situation in the rural areas.
Community banking services in the
rural areas are dynamic rural support system needed for an increase in the
productivity of both large and small-scale farmers local businessmen and social
amenities needs for better economic situation in rural areas.
The possibility or an easy access
to the services of community banks can be possible by any effective and well
organized rural community banking policy.
Rural and urban shifting could be
discourage by encouraging mechanized farming in the rural areas which will
hopefully lead to development of agro-based industries in the rural areas.
This will further create
employment opportunities to the unemployed people in the rural areas and also
motivate more people to appreciate setting in the rural areas. This will
further create employment opportunities to the unemployed people in the rural
areas and also motivate more people to appreciate setting in the rural areas.
Community banking services has a big role to pay in mobilizing and organizing
rural dweller into efficient active co-operative group and is also capable of
motivating the establishment of integrated rural communities by the active
services.
1.2 STATEMENT OF PROBLEM:
As a fall out of the system
distress during the banking and financing industry, the community banks are not
immured to the virus their dependency on conventional banks before they could
serve their customers have proved to be the most undoing factors inhibiting the
operations of community banks.
(a) POOR
INCOMPETENT AND AT TIMES FRAUDULENT MANAGEMENT:
The most serous
single factor responsible for the collapse of community banks is poor
management. In most cases, community banks managers are either poor in terms of
skills and lack of experience or are fraudulent manager expelled by their
further banks and now engaged by community and how engaged by community banks.
(b) POOR
ASSETS MANAGEMENT:
Another
by-product of poor and fraudulent management is poor asses quality credit
booked are not properly assessed or appraised unnecessary risk is taken and
produce in credit disbursement is often neglected for personal interest. A
great number of community banks manifesting liquidity problems emanated from
poor assets quality and unnecessary risk taking.
© LIQUIDITY
PROBLEM:
A significant
number of community bank failed because the refused to adhere to sound and safe
banking practices as well as non- maintenance of the liquidity ratio. Stipulated
by the financial regulators liquidator is the biggest virus in community
banking system failure.
(d) UNDER
CAPITALIZATION:
The capital of
a community bank is so small that it could not even maintain staff cost for 6
months. The initial minimum capitalization of N
250,000.00 (and N3m) is not enough
at present day to do any meaningful business low capital, high how loss
provision on poor quality asset, high operating cost as well as fraudulent and
irregular banking practices combined to erode the small capital base of many
community banks.
(e) POOR
INTERNAL CONTROL MEASURES:
Most community
banks are many cases unable to attract good and comp lent management staff, as
they could not complete with the conventional banks. They therefore, resort to
recruiting dismissed bank staff or appoint.
1.3 THE
OBJECTIVES OF THE COMMUNITY BANK:
The objectives
of the community banking system amongst others include:
(a) Promotion
of rural development by providing financing and banking services
(b) The rapid
entrancement of the development of productive activities in both rural and
urban areas.
© The promotion
of the emergence an effective and integrated national financial system that
responds to the needs of the whole economic especially at the grass roots
community levels.
(d) The
inculcation of discipline banking habits among the masses of low-income workers
in rural areas.
(e) The
fostering of the spirit of community ownership and use of economic assets.
Therefore, one way or the other they have achieved some aims, because of their
well defined and focused areas of need, the fearing neglected but highly
productive small income earners have been able to survive.
Example, a Port Harcourt based
community bank has advanced a loan of N50,
000.00. to 10 (ten) self help groups. Each of the group had a loan of N50,
000.00.
Such loan, the
first of its kind, which was given by the marine base community bank, is to be
used in uplifting the social status of the groups mainly made up of women.
The self-help
groups that benefit from the loan facilities are Nabi co-operative society.
Combined Investment, Fishing and Frading Association, Aniete co-operative
Enterprises, fresh meat Dealer Association, Menigibo organization and the
grinding.
Association others are Association of women
council Amabelemogbo, and Belemu Ogbo and so many others individuals that
benefited.
1.4
SIGNIFICATION OF STUDY:
This study will
provide an opportunity for any person who may read it to appreciate what the
role of community bank in the rural development means. It is also help in the
objectives of the federal government in setting up the community banking
system. It also brings some disadvantage of the federal government in the
country.
Their role also
offers some possible solutions to their problem, the study, therefore. Provides
a useful guide to future researchers ie those who might want to embark on a
study like this. The establishment of thee National bank of Nigeria in
1933.
1.5
DELIMITATION & LIMITATION & SCOPE
Research on
this area is not an easy task at all, since the research work is limited to
commercial banks operating in Nigeria
metropolis.
The
consideration will be made in these aspect of the role that commercial bank
plays in the Nigeria which concern the promotional activities, attitudes of
their staff, branching and communication.
1.6
DEFINITION OF TERMS:
Community:
Community is described as all the people who live in a particular area, country
etc. There is so many branches of community (1) Local community (2)
International community.
Community is a
group of people who share the same religion, race, job etc.
Biological
community is a group of animals or plants living or growing in the same place.
Banking:
banking is the business activity of the banks. Banking is thinking about a
career in bank.
Roles: Roles is
a function or position that somebody has or is expected to have in an
organization, in society or in a relationship: eg the role of the teacher in
the classroom.
Rural: Rural
area is an undeveloped area. Therefore, rural area is an area that does not
well developed like to say that area lack something like social amenities, good
road, pipe bone water, electricity etc.
Development: It
is a gradual of something in order to becomes more advanced, stranger etc. a
body’s development in the womb, the development of basic skills such as
literacy and numeracy career development.
Development is
also the new or more advances, a new or advanced product, the development in
aviation technology.
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