A CRITICAL REVIEW OF THE ROLE OF COMMUNITY BANKING IN RURAL DEVELOPMENT
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A CRITICAL REVIEW OF THE ROLE OF COMMUNITY BANKING IN RURAL DEVELOPMENT
ABSTRACT
This study examined the functions of community banks in rural development, which is critical to completing with other parts of the world.
Those from industrial countries, in particular, who are already involved in rural development and have easy access to many types of community banks in rural development.
To properly finish such rural development, Nigerian community banks must be willing to give attractive terms.
The federal government has worked hard, and continues to work hard, to foster the establishment of community banking in rural areas. A good step in this direction is the promulgation of community bank roles in rural development incentives and miscellaneous loans provision decree 46, which created several incentives for community banks in rural development.
In addition, a community bank for rural development has been established. In a summary, it is crucial to recognise that the activities of community banks in rural development are critical to economic development in rural areas.
As a result, all hands must be on deck to free our community from the hindrances or impediments posed by community banks, so putting our economy in a stronger position.
CHAPTER ONE
1.1 STATEMENT OF THE PROBLEM
The bank is designed to serve every member of the community, including indulging, organisations, and non-indigenous people.
A community bank is a self-sustaining financial institution owned and managed for credit worthiness by the community or a set of individuals (age grades) in that community.
I wish to look into how community banks have performed the tasks that were expected of them in rural development. These duties include:
a) Provide rural residents with financial and banking services.
b) Provides rural residents with security by operating equipment leasing facilities and supervising credit schemes for groups.
c) Assist clients in promoting agricultural and rural industries, as well as other items.
I also want to look into some of the challenges that these community banks have in carrying out their responsibilities:
a. Reckless lending and expenditure inability to promote banking services
b. Many community banks’ progress has been stymied by a lack of capital.
c. Human Resources
d. On the political front
1.2 THE RATIONALE FOR THE STUDY
A nature student must be purposeful, or else the researcher’s efforts will be in vain.
As a result, the findings of the study
1) The rapid development of rural production activities and, as a result, the development of the rural people’s and rural areas’ economic standing.
2) The promotion of rural development through the provision of financial and banking services to communities that are underserved.
3) Encouragement of communal ownership and use of economic assets, etc.
4) The instillation of disciplined banking habits among Nigeria’s masses of low-income employees, particularly those in rural areas.
5) The establishment of an effective and integrated national financial system that addresses the demands of the entire economy, particularly at the grassroots community level.
1.3. SIGNIFICANCE OF THE STUDY
This research will allow anyone who reads it to understand the importance of community banks. There is no value in claiming that it will provide enormous aid to potential role community bank via an anticipated problem that may appear to be an obstacle. And those who manage community roles give potential solutions to some of the problems they meet while performing their duties.
As a result, the study serves as a useful reference for future researchers who wish to conduct similar research.
1.4 DEFINITION OF TERMS
COMMUNITY: A collection of individuals who live in the same geographical region or who share a common hobby, religion, nationality, language, or culture.
BANKING: The act of acquiring from account holders, valuables for sate storing payment of cash according to the mandate of the customers, and supply of credit facilities to desire and eligible customers, as well as other financial services, by a financial entity known as a bank.
RURAL: This is the rural side of the country. It is the polar opposite of urban areas.
DEVELOPMENT: Development is a continual process of positive change in the quantity and length of life of an individual, a group of individuals, or a community. Other types of development are considered as contributory factors in this regard. Economic, social, political, technological, and cultural development are all interconnected and interdependent.
SELF-HELP: This suggests that people should produce anything they require without relying on others.
SMALL SCALE ENTERPRISE: Section 12 of the central bank’s circular number 28 on monetary policy in 1994 defined small scale firms as enterprises whose total cost, excluding fund costs but including working capital, is greater than one million naira (N1m) but less than ten million (N10m).
LOAN: This refers to a consumer withdrawing more than the amount put in a bank. The bank customer has a good reputation.
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