The Impact Of Community Banks In Economic Development Of Nigeria

The Impact Of Community Banks In Economic Development Of Nigeria

Chapter One

Preface

Background Of The Study

In Nigeria and in other developing countries like the problem of credit extension to the pastoral residers who can not go the important demanded collateral being demanded by utmost fiscal institution has been such a patient migraine case, that government after government have been making patient sweats to remedy this situation. The fiscal requirements of these pastoral resider pose a double problem in that part from the threat essential in similar credit in extension, it isn’t bring effective because of the large number of accounts involved with little quantities. Also the incapability of those group to have access to credits composites the vicious circle of poverty in the profitable system( Ugwuenyi.W. 1997P.235).

The abecedarian conception in the establishment and operation of communities for the purpose of furnishing credit, deposit, banking and other fiscal services within the area to its members largely on the base of their tone recognition and credit worthiness. It’s in contradiction to the near total reliance as the base for giving credit. It was designed to insure that bank community or group of communities may establish community banks for the purpose of promoting pastoral development perfecting the profitable status of small- scale directors both in the pastoral and civic area enhancing the rapid-fire development of product conditioning especially in the pastoral areas to support desirable and sustainable profitable growth in the Nigerian Banks.

The community- banking program took off in 1990 when chairman on power( Line General Ibrahim Babangida) in his periodic budget speech blazoned the community banking system would be introduced into the Nigeria fiscal system. The Community Bank perpetration Committee( CBIC), which established for general supervision creation, monitoring and development of the community banks. The bank act under the control of National Board for Community Banks. The banks and the Central Bank of Nigeria.

Statement Of Problem

a. How to harness those abundant coffers for the development of the pastoral areas, bearing in mind that those coffers are roundly held by the vast population of the pastoral residers.

b. The banking sector as the high maur of the nation profitable life is seen as the most feasible sector to make this dream a reality.

c. The depositors in community banks don’t have their deposit as is accessible in marketable and trafficker banks.

Lack of banking habit among the pastoral residers who still use old tradition ways of saving rallying like the diurnal saving system.

Ideal Of The Study

a. The objects of this study is to determine and assay the creation of pastoral development by furnishing fiscal banking services.

b. The inculcation of disciplined banking habits in the millions of low workers in Nigeria especially those in the pastoral areas.

Determine and assay its goods in the public profitable development and mokes how these development created by the community banks have gone in easing the pastoral profitable development.