recent times much has been said as regards the neglect of the rural area in
has been argued that over years, paper development strategies and policies for
the rural areas have not been pursued. This has led to a haphazard, not well
defined and problem by – problem policy or rural development in
Given the lopsided nature of Nigeria development effort with its urban bias, many scholars, policy makers and government have contended that there is no way we can simultaneous develop and modernize urban and rural areas and that infact one of the obstacles to developments is the existence of undeveloped rural economy.
Consequently, Mobogunji (1980) asserts that after many years of inadequate emphasis, during which pride of place was given to industrializations, it is now becoming generally recognized that rural development represents perhaps the only logical way of stimulating overall development.
has led to the pursuit of different policies and strategies for the
transformation and development of the rural areas. One of such policies is the
rural Banking Scheme embarked upon in July 1977. The banking industry especial
the commercial banking sub-sector was given this challenge of extending banking
services to the rural areas in particular and the
Therefore Agu (1986) has pointed out that the mobilization of financial resources is the first step to resource mobilization for development purpose. But the mobilization of financial resources requires an institutional arrangement which encourage and mobilizes saving into productive investment. In this way, the establishment of bank branches in the rural areas and the manner in which they conduct their business activities and perform their development role are particularly important since according to Lipsay (1983) if they do not function monthly, the link between private saving and investment may be broken and the problem of finding fund for investment greatly intensified.
the above warning by Lipsay was not headed to by commercial banks in
The only institutions that can be used as the magic wand are those financial houses, which are completely rural based, and not outposts of profit maximizing financial institutions, those institutions, which understand the rural people, are very willing to assist in solving their problems without necessarily attaching a lot of importance to profit maximization.
In view of the above, the Federal Government introduced community banking as a strategy to facilitate rural development, as there is a general belief that commercial banks are not fared well in the realization of government objectives as rural development.
Community Banks was conceptualized as a solution to the problem posed by the dearth of credit at a period when the directorate of Food, Road and Rural Infrastructure (DFRRI) was making some attempts at rural regeneration. The question then was, how could the credit need be resolved at the rural level when formal conventional leading institution for reasons of procedure and cost could not effectively manage the situation? Given the usual attitude of Nigerians to government institutions and property, it was through their credit institution based on private initiatives and adopted to the rural culture, institutions and security stood a better chance of success. The community-banking scheme was thus born in the cradle of traditional peer pressure sanction and community ownership.
community-banking institutions is the only entrenched in the wheel of
development to monetise the rural and sub-urban economy vis-visa rural development?
Anonymous, U (2020). Community Banking as A Strategy for Rural Development in Nigeria. Afribary.com: Retrieved November 29, 2020, from https://afribary.com/works/community-banking-as-a-strategy-for-rural-development-in-nigeria
User, Anonymous. "Community Banking as A Strategy for Rural Development in Nigeria" Afribary.com. Afribary.com, 04 Sep. 2020, https://afribary.com/works/community-banking-as-a-strategy-for-rural-development-in-nigeria . Accessed 29 Nov. 2020.
User, Anonymous. "Community Banking as A Strategy for Rural Development in Nigeria". Afribary.com, Afribary.com, 04 Sep. 2020. Web. 29 Nov. 2020. < https://afribary.com/works/community-banking-as-a-strategy-for-rural-development-in-nigeria >.
User, Anonymous. "Community Banking as A Strategy for Rural Development in Nigeria" Afribary.com (2020). Accessed November 29, 2020. https://afribary.com/works/community-banking-as-a-strategy-for-rural-development-in-nigeria