Thesis Abstract

Abstract
Community banks play a significant role in the economic development of regions by providing financial services to small businesses and individuals who may not have access to traditional banking institutions. This research focuses on the impact of community banks on the economic development of Anambra State, with a specific case study of Umudioka Community Bank Nig. Ltd. The study aims to identify the challenges faced by community banks in contributing to the economic growth of the state and explore potential prospects for their sustainable development. Through a mixed-methods approach, data was collected from both primary and secondary sources. Surveys, interviews, and financial data analysis were conducted to assess the current status of Umudioka Community Bank Nig. Ltd. and its role in the economic development of the region. The findings reveal several challenges faced by the community bank, including limited access to capital, inadequate infrastructure, and regulatory constraints. These challenges hinder the bank's ability to effectively serve the financial needs of the community and contribute to economic growth. Despite these challenges, the study also highlights several prospects for the sustainable development of community banks in Anambra State. These prospects include enhancing financial literacy programs, improving technology infrastructure, and strengthening regulatory frameworks to support community banking operations. By addressing these prospects, community banks can expand their services, reach more underserved populations, and stimulate economic activities in the region. Overall, the research underscores the importance of community banks in fostering economic development at the grassroots level. It provides valuable insights into the specific challenges faced by Umudioka Community Bank Nig. Ltd. and offers recommendations for enhancing its role in the economic growth of Anambra State. The findings of this study can inform policymakers, regulators, and stakeholders in developing strategies to support community banks and leverage their potential for driving sustainable economic development in the region.

Thesis Overview

INTRODUTION

1.1                                      BLACKGROUND OF THE STUDY

Concerted efforts were m ad for many years to involve sub- urban and rural people in Nigeria in modern banking practices. Apart from encouraging the establishment of commercial banks, merchant banks, specialized development bank were created focusing or mortgages

Agriculture, savings, co- operatives and other specific areas. Beyond this, rural branches were mandatory for the commercial bank so that the interest of the rural people could be catered for. Inspite of  these efforts, the rural  people could not fit into conventional banking system as they aye required to fill several forms, obey certain rules and are generally made to feel lost as their request for credit facilities are never met.

The problem persisted over the years and has led the government and some of agencies to seek acceptable solution to the problem. The central Bank of Nigeria mandated that specific number of rural branches of commercial banks be opened. Thi8s directive was complied with, but proved ineffective as the low –level education  and outright illiteracy of the rural people have made them unable to understand the complex and sophisticated operations.