Banking and Finance | ROLE OF COMMUNITY BANKING IN THE DEVELOPMENT OF NIGERIA

ROLE OF COMMUNITY BANKING IN THE DEVELOPMENT OF NIGERIA

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ABSTRACT

Banking industry in Nigeria has come of age. It started in 1894 by the statement of first bank of Nigeria. Since then the number of banks in Nigeria has been on the increase.
In 1993, the guest for indigenous banking started and later in the decade natwnal bank was registered the flood gate for banks was opened with the affairment of independence.
Merchant banks to off in 1964 with Nigeria industrial development bank. In 1992 to be precise. The government of babangida considered it necessary to license the community banks to help the retail banks penetrate into the interiors. Prior to than. It had not been possible for the banks to go to the interiors. This was a welcomed idea. My communities saw it as a challenge with the minimum capital base of N500,000 many communities can pull resource together and float one.
The functioning of these banks has not been two encouraging due to the prevailing structure of fraud in the banking industry in the country. This work, therefore seeks for ways Ogui community has aided community development in it operations and environs. 

CHAPTER ONE

1.0 INTRODUCTION 
1.1 BACKGROUND OF THE STUDY
Nigeria and indeed all developing nation are in dare need of any instrument of help to wriggle out of the quagmire of under development. The various concerns of respective regimes in these countries and primarily on the food, shelter, clothing and other essential needs that make life meaningful. These needs range from the lower centre of the three base food, shelter and clothing to the higher security and status. 
The primary aim of any nation is to make her citizens comfortable in every ramification. This connotes development of all the sectors of the economy and comes only by the combined effort of government, firms and individuals. The government here could be central or federal state or regional and local or district. The firm include all the manufacturing concerns either individual or their group and government as well. 
Before embarking on any project the resources have to be harnessed. These resources include the various income by these three sector –government, firm and individual where the resource cannot meet with the demand, external means have to come to play.
Government as a pioneering hand cannot meet these needs from some where as they run to hundreds of millions for small business that need few thousands to start, the bulk population do not have them and so should come from some where the government of various administrations have tried to make life as meaningful as possible by purporting to providing the essential amenities that are catalyst to development. 
The generality of the people live in rural areas, and to provide these in rural area is a task they have set to achieve. The rural population and encouragement to se6t up the thieving ventures that can help them. This encouragement is in terms of finance or in fixed assets like financial house as banks. 
Depending on the amount needed for the take off, there are places to go to. These includes the development banks for loans repayable at least ten years like the Nigeria bank for commerce and industry (NBCI). Nigeria industrial development bank (NIPB). And Nigeria Agricultural bank (NAB). Merchant banks are there as discount houses, aid of portfolio management and financier of foreign trade as equipment leasing commercial bank as retail bank only give loan at a maximum of three years. The collaterals need in any of those categories of banks are very for within the reach of ordinary citizen it then appears that only the rich enjoy those services.

1.2 STATEMENT OF THE PROBLEM 
The problem of this study are:
1. How willing are managers of community banks ready to give loans without stringent collaterals.
2. How do community banks cope with low level income of their customers.
3. How could stark illiterate ones be encouraged to bank incomes.
4. What role do community banks play in the development of Nigeria. 
5. In what aspect has Ogui community bank contributed in the development of Nigeria.

1.3 OBJECTIVES OF THE STUDY 
1. To the objective of this study to highlight various ways the community banks can help the rural dwellers either by way of loan or by expert advice.
2. To the rural dwellers will through the rural banking of this nature develop banking habit.
3. Most rural dwellers are not aware of the various types of fixed assets used in starting efficient business. 
4. To the rural dweller have landed properties, but few other financial assets, it is the purpose of this study to do-emphasize the tendency to collect collaterals outside land. This will encourage them invest loans useful as they regard load highly and so would not like to lose it.
5. To the objective of this study to emphasize the need for increased investment to be lightened while we discourage the normal tenderly to hold cash, that is liquidity preference. 
6. To the objective of this study is to find out the role the community banks play in the development of rural Nigeria.

1.4 LIMITATION OF THE STUDY 
The researcher have limited herself to the operation of community bank as it effects the rural dwellers in trying to develops the economy. The researcher is aware of the numerous financial institutions littered in the country but the research have pinned her study down to community bank operations with Ogui Urban community bank as a focal point.

1.5 SIGNIFICANCE OF THE STUDY 
1. The national board for community banks could use the findings of this study to plan for concern tech. efforts to improve the costs of operations of community banks in general.
2. It will be significant to government in revamping economy using the strategies marshaled therein.
3. The local people looking for more information on community banks could consume this work.
4. Interacted the public hoping to know more of community banks and their operation could lay hold on this episode.

REFERENCES
David B.O, Jacob A.D., Udoh and Jonah k.O. (1994) Business 
Finance London: University press.
Justice Ngwama (1995) Development finance Dares-Salon: 
University Publishers. 
Ngbaji (1993) Development finance Enugu: Fourth Dimensions.
Nwannunu Mark (1986) Money and Banking Dakar: France
Publishers. 

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