1.1 BACKGROUND OF STUDY
This project work has a basis on the identification of the roles of community banking system in promotion of rural development in Nigeria.
The community banking system was launched with the opening of Alheri community bank Kaduna by then president on 31st December 1990 within three years, about 1991 community banks had commended operation nation wide. Today there are over 1000 Community banks in operation throughout the country. The government assistance in this regard, apart from helping to incorporate and license the banks and train their staff consists largely provided them with matching loans to aid them through the initial teething period.
Community bank is the latest arrival in the banking sector. The decision to come up with a community bank was promulgated in the 1990 budget speech by then president Ibrahim Babangida. However, the program actually took in December 1990 when the first licensed community bank stated operation in Alhen, Local government area of Kaduna state to speed up the scheme, a president committee called “Community banks implementation committee” was set up. This was later replaced by the National Board for community bank, which is under the presidency.
The board is legally backed by the community bank decree of 1992 and its charged with the responsibility of supervision and regulated or community Banks.
Consequently the effectiveness effort of the board, community banks were shaped to become very deposit banking and financial services to its grass root level.
1.2 STATEMENT OF THE PROBLEM
Problem of inculcating banking habit to the rural dwellers. For example palm wine tapers who don’t ever know anything about banking after making a lot of money from daily states of their product either keep the proceeds at home or among the raffia’s where they tap and it turns to be a problem and the federal government decided to establish community banks to source these collie funds in the rural community.
Loan recovery: It has turn to be a problem because of lack of collateral securities high of delinquency arising from deliberate refused of pay back loan for the fact that community bank is a grass root banking system aimed at inculcating banking habits in rural folks. The community bank do not emphasis collateralize for loan execution.
1.3 PURPOSE / OBJECTIVE OF THE STUDY
To find out the various financial services offered by the community banks and their role in rural development.
To find out how effective they are in pursuance of the objective of the community banks to provide through the recommendation the operational development of the rural populace.
1.4 SIGNIFICANCE OF THE STUDY
The significance of the research work lies on the fact that the establishment of community banks is a step in the right direction towards economic growth and increased standard of living both the urban and rural communities.
Moreover, the project will make it easy for government, community bank managers and their customers to address their minds to the best way of operating or managing community banks in the country.
Besides the implementation of the finding and recommendation of the project will in no small measure enhance the development activities of the community banks towards rural dwellers and also increase the level of public confidence reposed in them.
Can't find what you are looking for?
Call (+234) 07030248044.
OTHER SIMILAR BANKING FINANCE PROJECTS AND MATERIALS
A CRITICAL ANALYSIS ON THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)
ABSTRACT This project work is carried out to examine the contribution of micro finance banks to the development of Small and medium scale enterprises in Nigeria. The Brass micro finance bank is used a...Continue reading »
A STUDY ON THE ACCEPTANCE AND ADOPTION OF THE CBN CASHLES POLICY IN PORT HARCOURT, NIGERIA
CHAPTER ONE INTRODUCTION 1.1. BACKGROUND TO THE STUDY One of the prerequisites for the development of national economy according to Ajayi et al, 2006 is by encouraging a payment system that is secu...Continue reading »
A STUDY ON THE IMPACT OF BUDGETARY CONTROLS ON THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIDELITY BANK PLC)
CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY AND PROFILE OF THE ORGANIZATION Following the uncertainties prevailing in the Nigerian business environment today, managers and stakeholders mu...Continue reading »
ANALYZING PERFORMANCE APPRAISAL TECHNIQUES IN UNION BANK NIG PLC
CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY In any evaluation of the condition necessary for the growth and survival of an organization, the role of performance appraisal is a strategic f...Continue reading »
AUDIT INDEPENDENCE: ENHANCING ACCOUNTABILITY AND TRANSPARENCY IN CORPORATE ORGANIZATIONS
CHAPTER ONE INTRODUCTION 1.1. Background of the study The subject of transparency and accountability in modern day corporate organizations has continued to receive attention as never before. It has b...Continue reading »
CREDIT MANAGEMENT AND ISSUES OF BAD DEBTS IN COMMERCIAL BANKS IN NIGERIA
The article on this topic (credit management and issues of bad debts in commercial banks in Nigeria) is an extract from literature review of the project material. The complete project work would be ma...Continue reading »
What are looking for today?
THE IMPACT OF HUMAN RESOURCE PLANNING ON ORGANIZATIONAL PERFORMANCE
62,493 people found this useful
THE EFFECT OF SOCIAL MEDIA ON STUDENTS PERFORMANCE IN LEARNING LISTENING COMPREHENSION
48,529 people found this useful
TAX ADMINISTRATION IN NIGERIA: CHALLENGES AND PROSPECTS, A CASE STUDY OF LAGOS STATE BOARD OF INTERN...
42,808 people found this useful
THE EFFECT OF TREASURY SINGLE ACCOUNT ON THE ECONOMY OF NIGERIA
42,532 people found this useful
IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOR
40,006 people found this useful
CAUSES AND EFFECTS OF COMMUNICATION BREAKDOWN IN AN ORGANIZATION (A case study of champions’ brewe...
39,004 people found this useful