The Prime Focus of Community Bank in Nigeria

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Most communities in Nigeria are still seriously in the dungeon of making tangible development. Under-development according to a professor is a stage of development, which most communities in Nigeria are still aspiring to attain and that modern amenities; application to social life are yet to be achieved. This community bank was established to reach out to rural areas by decree 46 of 1992, but started its operations in 1990. This is to supplant the banking scheme in Nigeria and to operate as a unit banking.

Community bank was introduced or rather established to achieve the following:

  1. To quicken the development of rural areas: One of the sole responsibilities of the community bank is to help accelerate the development in the rural areas. Development of the rural areas is very essential to the development of the nation as a whole; this is because, it makes the impacts of government activities to be felt also by rural dwellers. The presence of these banks in the areas will definitely improve the economy of the community and its surroundings.
  2. To curtail the rural-urban drift: One of the problems the government is very interested in is how to control the rural-urban migration. Excessive immigration to urban areas will result in increased problems, especially in terms of amenities for the urban areas. One of the ways the government employs to handle this is the establishment of community banks in promising rural areas to serve the financial needs of the people. There is a likelihood of reduction in rural-urban drift with this.
  3. To make credit facilities available: One major challenge that an industrious rural man faces is lack of funds to execute his business plans. This to be candid has greatly contributed to the snail speed development in Nigeria especially the rural areas. The establishment of the community banks in these rural areas will ensure that the grassroots dwellers have access to timely credit facilities, in a very convenient way to pay back. I want to say that this has greatly improved the conditions of the rural dwellers.

The major tenet of community bank operations is to be solely identified with the economic fortune of the community where it is located; the obvious fact is that many of these banks have left this path long ago. But nevertheless, the few remaining still have in place, viable linkage that encourages the community it serves; thus, each bank by serving its particular area contributes to the overall development of the banking system in the economy.

Source by Kehinde Oyeniran

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