Project Abstract

Project Overview

<p> </p><p><b>INTRODUCTION</b></p><p><b>1.1 &nbsp; &nbsp; <br></b><b>Background<br>of the study</b></p><p>The federal government of<br>Nigeria 1990 budget speech decided to establish community bank in order to<br>strengthen its programmes of grassroots economic development. The<br>fundamental concept of a community banks is of a self-sustaining financial<br>institution, owned and managed by a community for the purpose of providing<br>credit deposit, banking and the service to its members. It is designed to<br>ensure that a community may establish a community bank for the purpose fo<br>promoting rural development throughout the provision of finance and banking<br>service improving the economic status of small scale producers both in the<br>rural and urban areas, enhancing the rapid development of production activities<br>especially in the rural economic growth in Nigeria. A bank licensed under<br>the community bank decree shall accept from persons various types of deposit including<br>savings and time savings.Receive or collect money on behalf of its customers,<br>operate equipment leasing facilities which are designed to ensure access of its<br>customer to farm input. Community bank in Nigeria banking system dates<br>back to 1990 when the budget speech was delivered by the president commander in<br>Chief of the Armed Forces, General Ibrahim Babangida.</p><p><b>1.2<br>STATEMENT OF THE PROBLEM</b></p><p>The<br>statement of the problem includes the following: –</p><p>1. &nbsp;<br>How can loan able funds made accessible to rural borrowers to enhance their<br>economic activities?</p><p>2. &nbsp;<br>How can the loan be secured other than asking for tangible security like<br>collateral?</p><p>3. &nbsp;<br>How rural banking habit can be improved to assist I rural development?</p><p><b>1.3 OBJECTIVE OF THE STUDY</b></p><p>The studies conducted by<br>the researcher on the role of</p><p>Community banks in rural<br>development reveal that the objective of the study includes the following: –</p><p>1. &nbsp; To<br>determine how rural dwellers had responded to the services of community banks.</p><p>2. &nbsp; To<br>identify the type of customer that patronizes community banks.</p><p>3. &nbsp; To<br>determine the type of services that is rendered to the public by the community<br>banks.</p><p>4. To ascertain the<br>extent to which granting of loan to rural dwellers has any effect on<br>unemployment level.</p><p>5. &nbsp;To determine if<br>any there non-banking services that are rendered to the public by the community<br>banks.</p><p>6. &nbsp; To<br>examine if the availability of the loan has reduced the level of rural urban<br>migration.</p><p><b>1.4<br>RESEARCH HYPOTHESES</b></p><p>For the successful completion of the study, the<br>following research hypotheses were formulated by the researcher; </p><p><b>H0:<br></b>there<br>is no type of services that is rendered to the public by the community banks.</p><p><b>H1:<br></b>there<br>is type of services that is rendered to the public by the community banks</p><p><b>H02:</b>there<br>are no types of customer that patronizes community banks</p><p><b>H2:</b>there<br>are types of customer that patronizes community banks</p><p><b>1.5 SIGNIFICANCE OF THE<br>STUDY</b></p><p>This research work will be<br>of immense help to thegovernment especially the rural development authority, as<br>it will give them the opportunity to assess their performance in rural development. <br>It will also be a great value to the community banks to assess their<br>performance.Hence, it will be beneficial to the generality of the public. <br>It will also be of a great importance to people carryout research in related<br>topic. The study is as much as it attempts to achieve the purpose of<br>promoting the rural development by providing financial and banking services,<br>credit and deposit services as well as other facilities. It is also to<br>achieve the festering of the spirit of community ownership and of economic<br>assets and its maintenance on a suitable basis. To the economy at large,<br>this study is of a great value since rural development involves providing those<br>social amenities in the urban area to the rural area. This to some extent<br>restricts the usual movement. Restriction will lead to the promotion of<br>rural financial and banking services and integrated national financial system<br>that responds to the need of the whole economy.</p><p><b>1.6<br>SCOPE AND LIMITATION OF THE STUDY</b></p><p>The<br>scope of the study covers the role of community bank in rural development of<br>Nigeria. The researcher encounters some constrain which limited the scope of<br>the study;</p><p><b>a)<br>AVAILABILITY OF RESEARCH MATERIAL:</b><br>The research material available to the researcher is insufficient, thereby<br>limiting the study &nbsp; &nbsp; &nbsp; </p><p><b>b) TIME:</b><br>The time frame allocated to the study does not enhance wider coverage as the<br>researcher has to combine other academic activities and examinations with the<br>study.</p><p><b>c)<br>Organizational privacy</b>: Limited Access to the selected<br>auditing firm makes it difficult to get all the necessary and required<br>information concerning the activities. </p><p><b>1.7DEFINITION<br>OF TERMS</b></p><p>For the purpose of this<br>research work, the definition ofterms used with the UN Standard Industrial classification<br>of economic activities.</p><p><strong>1. Economic:</strong>&nbsp;<br>Is the study of how a society organizes its money, in order to encourage its<br>nation.</p><p><strong>2. &nbsp; Rural<br>Areas:</strong>&nbsp; In a little communities that is not<br>as larging like the city</p><p><strong>3. &nbsp; Community:</strong>&nbsp;Is<br>all the people living in a particular area.</p><p><strong>4. &nbsp; Community<br>Bank:</strong>&nbsp;Is a self sustaining financial institution owned<br>by a community or a group of community.</p><p><strong>5. &nbsp; Loanable:</strong>&nbsp;This<br>is the money that can organization such as a bank lend out money.</p><p><strong>6. &nbsp;Funds:</strong>&nbsp;Is<br>the amount of money that has been saved or that has been made available for a<br>particular purpose</p><p><b>1.8 ORGANIZATION OF THE STUDY</b></p><p>This<br>research work is organized in five chapters, for easy understanding, as follows</p><p>Chapter one is concern with the introduction, which<br>consist of the (overview, of the study), historical background, statement of<br>problem, objectives of the study, research hypotheses, significance of the<br>study, scope and limitation of the study, definition of terms and historical<br>background of the study. Chapter two highlights the theoretical framework on<br>which the study is based, thus the review of related literature. Chapter three<br>deals on the research design and methodology adopted in the study. Chapter four<br>concentrate on the data collection and analysis and presentation of<br>finding. Chapter five gives summary,<br>conclusion, and recommendations made of the study</p><br> <br><p></p>