Project Abstract

Abstract
Community banking plays a crucial role in rural development by providing financial services to underserved populations in remote areas. This paper presents a critical review of the role of community banking in fostering rural development. The study examines the impact of community banks on economic growth, poverty alleviation, and overall development in rural areas. Through a comprehensive review of existing literature, the paper identifies key factors that contribute to the effectiveness of community banking in rural development. These factors include increased access to financial services, tailored products for rural customers, capacity building, and community involvement. The study also highlights the challenges faced by community banks, such as limited resources, regulatory constraints, and competition from larger financial institutions. Furthermore, the paper discusses the importance of partnerships between community banks, government agencies, non-profit organizations, and other stakeholders in promoting rural development. These collaborations can help leverage resources, share best practices, and create synergies that benefit rural communities. The study emphasizes the need for a supportive policy environment that recognizes the unique role of community banks in rural development. In addition, the paper explores the potential of technology and innovation in enhancing the reach and impact of community banking services in rural areas. Mobile banking, digital payments, and other technological solutions can help overcome geographical barriers and improve financial inclusion for rural populations. However, the study also cautions against the digital divide and the importance of ensuring that technological advancements are inclusive and accessible to all members of the community. Overall, the findings suggest that community banking plays a vital role in promoting rural development by providing essential financial services, fostering economic growth, and empowering underserved populations. By addressing the unique needs and challenges of rural communities, community banks can contribute significantly to poverty reduction, job creation, and sustainable development in rural areas. In conclusion, the critical review underscores the importance of community banking as a key driver of rural development. By supporting the growth and sustainability of community banks, policymakers, financial institutions, and other stakeholders can help unlock the full potential of rural economies and improve the quality of life for millions of people living in rural areas.

Project Overview

1.1   STATEMENT TO PROBLEM

The bank is structure to accommodate every community member including indulging, organization and non-indigenes. A community bank is a self sustaining financial institution owned and managed by the community or group of people (age grades) in that community for credit worthiness.

I want to investigate how for the community banks have played the roles expected of them in rural development these roles include to:-

a) Provide financial and banking services to rural dwellers.

b) To serve as security to the rural dwellers operate equipment leasing facilities, supervises credit schemes for groups

c) Assist clients in marketing agricultural rural industries and other products.

I also want to investigate some of the problems facing these community banks in the performance of the roles:-

a. Reckless lending / spending inability to market banking service

b. Poor capital base has stagnated the progress of many community banks.

c. Staffing

d. Political

1.2  RATIONALE OF STUDY

A student of the nature must be purposive otherwise it will mean that the researcher has labour in vain. The study, therefore are

1) The rapid development of production activities in the rural areas and hence the development of the economic status of both the rural people and the rural areas.

2) The promotion of rural development by providing financial and banking services to communities madunately supplied with such services.

3) The fostering of community ownership and use of economic asset. Etc.

4) The inculcation of discipline banking habits among the masses of low income workers in Nigeria, especially thodre in the rural areas.

5) The emergence of an effective and integrated national financial system that responds to the needs of the whole economy, especially at grassroots community levels.

1.3  SIGNIFICANCE OF THE STUDY

This study will provide an opportunity for any person who may read it to appreciate what role community banks mean. There is no gain saying that it will proffer an immense assistance to potential role community bank through an expected problem, that may seem a hindrance. And those that are managing the roles of community, offer possible solutions to some of the problem they encounter while performing their duties. The study therefore provide useful guide to future researchers who may want to embark on the study.

1.4  DEFINITION OF TERMS

COMMUNITY: This means group of people living together in a geographical area, or united by shared interest, religion, nationality, language and culture.

BANKING: This is the act of acquiring form account holders, valuables for sate keeping payment of cash according to the mandate of the customers and provision of credit facilities to desire and qualified customers and other financial services, by financial institution called bank.

RURAL: This is the country side of country. It is the opposite of the urban centers.

DEVELOPMENT: Development is a continuous process of positive change in the quantity and span of life of a person group of person and a community. In this respect other forms of development are taken as contributory factor economic, social political, technology and cultural development are inter-related and inter dependent.

SELF-HELP: This means that people should produce whatever they need them selves without depending on outside help.

SMALL SCALE ENTERPRISE: central banks circular number 28 on monetary policy in 1994 section 12 designed small scale enterprises as an enterprise whose total cost excluding cost of fund but including working capital is above one million naira (N1m) but does not exceed ten million (N10m).

LOAN: This means a customer in the bank withdrawing more than the amount deposited on a bank. The bank customer is of respectable character.