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COMMUNITY BANKS AND ECONOMICS DEVELOPMENT: PROBLEMS & PROSPECT

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CHAPTER ONE

INTRODUCTION

1.1                                      BACKGROUND 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. This 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.

 

 

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