Project Abstract

Abstract
Community banks play a significant role in the rural development of Nigeria. This research aims to explore the specific contributions and impact of community banks in fostering economic growth and development in rural areas. The study will employ a mixed-methods approach, combining quantitative analysis of financial data with qualitative interviews and surveys to gather a comprehensive understanding of the role of community banks in rural development. The research will focus on several key areas, including access to financial services, support for small businesses and agriculture, and community empowerment initiatives. By analyzing the financial performance of community banks and conducting interviews with stakeholders, the study seeks to identify the strengths and challenges faced by these institutions in driving rural development. The findings of this research will provide valuable insights for policymakers, practitioners, and academics seeking to understand the role of community banks in promoting rural development in Nigeria. By highlighting successful strategies and best practices, the study aims to inform future initiatives aimed at strengthening the impact of community banks in rural areas. Overall, this research contributes to the existing literature on rural development and financial inclusion by focusing on the specific role of community banks in Nigeria. The study will offer practical recommendations for enhancing the effectiveness of community banks in supporting local economic development and empowering rural communities. Keywords community banks, rural development, Nigeria, financial inclusion, economic growth, small businesses, agriculture, community empowerment, financial services, mixed-methods research

Project Overview

INTRODUCTION

1.1    
Background
of the study

The federal government of
Nigeria 1990 budget speech decided to establish community bank in order to
strengthen its programmes of grassroots economic development. The
fundamental concept of a community banks is of a self-sustaining financial
institution, owned and managed by a community for the purpose of providing
credit deposit, banking and the service to its members. It is designed to
ensure that a community may establish a community bank for the purpose fo
promoting rural development throughout the provision of finance and banking
service improving the economic status of small scale producers both in the
rural and urban areas, enhancing the rapid development of production activities
especially in the rural economic growth in Nigeria. A bank licensed under
the community bank decree shall accept from persons various types of deposit including
savings and time savings.Receive or collect money on behalf of its customers,
operate equipment leasing facilities which are designed to ensure access of its
customer to farm input. Community bank in Nigeria banking system dates
back to 1990 when the budget speech was delivered by the president commander in
Chief of the Armed Forces, General Ibrahim Babangida.

1.2
STATEMENT OF THE PROBLEM

The
statement of the problem includes the following: –

1.  
How can loan able funds made accessible to rural borrowers to enhance their
economic activities?

2.  
How can the loan be secured other than asking for tangible security like
collateral?

3.  
How rural banking habit can be improved to assist I rural development?

1.3 OBJECTIVE OF THE STUDY

The studies conducted by
the researcher on the role of

Community banks in rural
development reveal that the objective of the study includes the following: –

1.   To
determine how rural dwellers had responded to the services of community banks.

2.   To
identify the type of customer that patronizes community banks.

3.   To
determine the type of services that is rendered to the public by the community
banks.

4. To ascertain the
extent to which granting of loan to rural dwellers has any effect on
unemployment level.

5.  To determine if
any there non-banking services that are rendered to the public by the community
banks.

6.   To
examine if the availability of the loan has reduced the level of rural urban
migration.

1.4
RESEARCH HYPOTHESES

For the successful completion of the study, the
following research hypotheses were formulated by the researcher;

H0:
there
is no type of services that is rendered to the public by the community banks.

H1:
there
is type of services that is rendered to the public by the community banks

H02:there
are no types of customer that patronizes community banks

H2:there
are types of customer that patronizes community banks

1.5 SIGNIFICANCE OF THE
STUDY

This research work will be
of immense help to thegovernment especially the rural development authority, as
it will give them the opportunity to assess their performance in rural development.
It will also be a great value to the community banks to assess their
performance.Hence, it will be beneficial to the generality of the public.
It will also be of a great importance to people carryout research in related
topic. The study is as much as it attempts to achieve the purpose of
promoting the rural development by providing financial and banking services,
credit and deposit services as well as other facilities. It is also to
achieve the festering of the spirit of community ownership and of economic
assets and its maintenance on a suitable basis. To the economy at large,
this study is of a great value since rural development involves providing those
social amenities in the urban area to the rural area. This to some extent
restricts the usual movement. Restriction will lead to the promotion of
rural financial and banking services and integrated national financial system
that responds to the need of the whole economy.

1.6
SCOPE AND LIMITATION OF THE STUDY

The
scope of the study covers the role of community bank in rural development of
Nigeria. The researcher encounters some constrain which limited the scope of
the study;

a)
AVAILABILITY OF RESEARCH MATERIAL:
The research material available to the researcher is insufficient, thereby
limiting the study      

b) TIME:
The time frame allocated to the study does not enhance wider coverage as the
researcher has to combine other academic activities and examinations with the
study.

c)
Organizational privacy: Limited Access to the selected
auditing firm makes it difficult to get all the necessary and required
information concerning the activities.

1.7DEFINITION
OF TERMS

For the purpose of this
research work, the definition ofterms used with the UN Standard Industrial classification
of economic activities.

1. Economic: 
Is the study of how a society organizes its money, in order to encourage its
nation.

2.   Rural
Areas:  In a little communities that is not
as larging like the city

3.   Community: Is
all the people living in a particular area.

4.   Community
Bank: Is a self sustaining financial institution owned
by a community or a group of community.

5.   Loanable: This
is the money that can organization such as a bank lend out money.

6.  Funds: Is
the amount of money that has been saved or that has been made available for a
particular purpose

1.8 ORGANIZATION OF THE STUDY

This
research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which
consist of the (overview, of the study), historical background, statement of
problem, objectives of the study, research hypotheses, significance of the
study, scope and limitation of the study, definition of terms and historical
background of the study. Chapter two highlights the theoretical framework on
which the study is based, thus the review of related literature. Chapter three
deals on the research design and methodology adopted in the study. Chapter four
concentrate on the data collection and analysis and presentation of
finding. Chapter five gives summary,
conclusion, and recommendations made of the study