ABSTRACT
Community banks were established in
Nigeria
to help remedy the rural development problem that has been facing Nigeria since
after World War II.
The fundamental concepts of a
community bank is of a self sustaining financial institution, owned and managed
by community or a group of communities for the purpose of providing credit
deposit, banking and other financial services to its members.
The objectives of the research work
therefore covered the pace of providing financial and banking services and
other facilities to communities that were inadequately supplied with such
services, the rapid enhancement of the development of productive activities in
rural areas, the promotion of emergence of an effective integrated national
financial system that responds to the need of the whole economy from individual
and grassroots community level through level of local government areas and
states to the national level.
The study also covered the problems
encountered by these banks in carrying out their functions and then the
recommendations of the possible solutions.
TABLE OF
CONTENTS
Title page ii
Approval page iii
Dedication iv
Acknowledgement v
Abstract vii
Proposal ix
List of table xii
Table of content xii
CHAPTER ONE
INTRODUCTION 1
1.1
Background of the study 1
1.2
Statement of problem 4
1.3
The purpose/objective of the study 6
1.4
Scope of the study 7
1.5
Research questions 8
1.6
Significance of the study 9
1.7
Definition of terms 10
CHAPTER TWO
REVIEW OF LITERATURE 12
2.1
Origin of Community Banks 12
2.2
Nature and scope of Community Bank 17
2.3
Objectives of community banks and
functions of community banks 22
2.4
Techniques of improving community banking service 32
2.5
Summary of related literature 36
CHAPTER THREE
RESEARCH METHODOLOGY 37
3.1
Research design 37
3.2
Area for the study 37
3.3
Population for the study 37
3.4
Sample and sampling procedure 38
3.5
Instrument for data collection 38
3.6
Validity of the instrument 38
3.7
Reliability of the instrument 38
3.8
Method of administration of the instrument 39
3.9
Method of data analysis 39
CHAPTER FOUR
DATA PRESENTATION AND RESULTS 41
4.1
Summary of results 45
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS, RECOMMENDATION AND
SUGGESTIONS FOR FURTHER STUDY 47
5.1
Discussion of results 47
5.2
Conclusions 48
5.3
Implications of the results 50
5.4
Recommendations 50
5.5
Suggestions for further study 53
5.6
Limitation of the study 53
REFERENCES 55
APPENDIX 57
LIST OF
TABLE
TABLE 4.1: The
qualify of services rendered by OHHA Community Bank.
TABLE 4.2: Average
time spent before receiving service.
TABLE 4.3: Discrimination
in the services of Ohha community Bank
TABLE 4.4: Improvement on customers’ service helps
in attaining corporate objectives.
CHAPTER ONE
INTRODUCTION
1.1 BACKGOUND OF
THE STUDY
The federal government of Nigeria in 1990
budget speech decided to establish community banks in order to strengthen its
programmes of grassroots economic development.
The fundamental concept of a
community bank is of a self-sustaining financial institution, owned and managed
by a community or a group of communities for the purpose of providing credit,
deposit banking and other services to its members largely on the basis of their
self-recognition and credit worthiness.
This is in contradiction to the near total reliance by the orthodox
banks on viable and negotiable collaterals as the basis for giving credit.
It is designed to ensure that a
community or group of communities may establish a community bank for the
purpose of promoting rural development through the provision of finance and
banking services, improving the economic status of small-scale producers both
in the rural and urban areas, enhancing the rapid development of productive
activities especially in the rural area to support desirable and sustainable
rural economic growth in Nigeria.
A bank licensed under the community
bank decree shall accept from persons various types of deposits including
savings and time deposits. Receive or
collect on behalf of its customers, money or proceeds of banking instruments,
provide ancillary banking services to its customers, maintain and operate
various types of accounts with other banks, and perform such none banking
functions as may promote grassroots development within the banks geographical
areas and also operate equipment leasing facilities designed to ensure access
of its customers to form inputs purchase on a consignment basis for group of
client.
Community banks in Nigeria banking
system dates back to 1990 when budget speech was delivered by the president, commander
in-chief of the armed forces, General Ibrahim Babangida. Since them each state of the federation now
has a minimum of at least twenty (20) community banks. Even the federal capital Territory has
four. These banks are in all part of the
country.
National board for community banks
is established for monitoring, promotion, development and general supervisions
of the community banks. Hence the banks
are under the control of national board for community banks (NBCB) and the
Central Banks of Nigeria.
As we move into the 21st
century, community banks all over the world realize that only those that
overhaul the whole of their service delivery systems and operations are likely
to survive and prosper in the new millennium.
This is due to the pressure of globalization, consolidation, delegation
and rapidly changing technology. In
order to properly place themselves in favourable positions for competition and
be one of the corporations to be reckoned within the new century, community
banks are making use of information technology (IT). They have not only started ensuring that
their PC per capital use is one for every staff, they have also started
bringing PCS together to form local and wide area networks.
Many community banks have installed
a modern computer inter-connectivity backbone that would enable them achieve
community of data and multimedia over intranets, extranets, and with the whole
world, over the Internet. They also
realize that they have to achieve not only management/staff wide computer literacy,
but what could e called information literacy, i.e. knowing how to locate,
analyse, store and use information. All
staff and managers in a modern community banks need to be able to search and
gather data from several different types
of sources, analyse them, select the relevant ones and organize them in
such a manner to allow them to make decisions based on the organized data.
Community banks of the future
realize that the banking of tomorrow requires more of electronic manipulation
and shuffling of bits-based money and other banking transactions, instead of
paper.
1.2 STATEMENT OF
THE PROBLEMS
The fact that the rural areas are
under developed when compared to the urban areas in true and the fact that
there are untapped material and financial resources in these rural communities
is also true. The major problems
therefore is how to harness these abundant resources for the development of the
rural area through the improvement of banking services based on staff important
bearing in mind that these resources are minutely held by the vast population
of the rural dwellers.
The banking sector as the prime
mover of the nations economic life is seen as the most viable sector to make
this dream a reality. But then, given
the Nigerian situation especially Enugu Metropolis with vast area of land and
low income base, the task before the community bank are quite enormous with the
problem of ignorance and illiteracy of the majority of people whom the banks
are dealing with and also the problem of infrastructual facilities which
includes good roads, water, electricity, office equipment and residential
accommodation for the bank staff who work in these rural areas.
But perhaps the most delicate of
these problems is the lack of banking habit among the rural dwellers who still
use old traditional ways of savings mobilization like the daily savings method
or the “ISUSU” of the social meetings.
How can the bank make the rural dwellers less apprehensive of the bank
and use the services provided by them to enhance their welfare?
Among the problems include:
1. Effects of
these bank in national economic development.
2. Lack of modern
equipment in the community bank.
3. Poor level and quality of services
provided by this Ohha community Bank.
4. It is difficult to know the extent
discrimination of services has gone in the banking service.
5. The contribution to growth of small scale
industries in Enugu Metropolis.
6. It is also difficult to know the extent of alleviating the urban
economic development problems.
1.3 OBJETIVE OF THE STUDY
The objectives of this study is to
analyse the techniques of improving banking services in Ohha Community
bank. These objectives includes:-
1. To find out the effect of community bank
in the national economic developments.
2. To ascertain the extent to which lack of
modern equipment effects banking services.
3. To find out the extent to which the poor
quality of services effect Ohha community bank.
4. To ascertain the extent to which
discrimination effects banking services
in Ohha Community bank
5. To determine to what extent contribution
of Ohha Community bank to small scale industries in Enugu Metropolis.
6. To ascertain the extent to which these
developments effect in urban economic development problems.
1.4 SCOPE OF THE STUDY
This research work was chosen with
the intention to analyse the techniques of improving banking services but with
particular reference to Ohha Community bank, Enugu.
This is with the view to determining how the bank has been able to
change the economic situation of the people around the area.
In the analysis, attention will be
focused on the contribution of this bank to the growth of small scale
industries. The study covers
ascertaining from the bank all necessary information and requirement that will
be of help in achieving customers satisfactions.
1.5 RESEARCH QUESTIONS
The
following research questions have been designed for analysis:
1. To what extent does the establishment of
community banks in Nigeria
especially the Ohha Community bank affect national economic development?
2. To what extent does lack of modern
equipment affects banking in Ohha Community bank?
3. To what extent does poor services affect
the banking services of Ohha Community bank?
4. To what extent does discrimination of
services affect Ohha Community bank?
5. To what extent are contributions to
growth of small scale industries in Enugu Metropolis?
6. To what extent does these services affect
the urban economic development problems?
1.6 SIGNIFICANCE OF THE STUDY
This research work will be of
immense help to the government especially the rural development authority as it
will give them the opportunity to access their performance in rural banking
development. It will also be of great
value to the community banks to access their performance in the area of
services to their customers and improve in the area of poor performance. Hence it will be beneficial to the generality
of the public. It will also be of great
importance to people carrying out research in related topics.
To the economy at large, this study
is of great value since rural economic development involves providing these
social amenities in the urban areas to the rural areas. This will e some extent restrict the usual
movement of rural dwellers to urban areas.
The movement restriction will lead
to massive agricultural and industrial production, the promotion of rural
financial and banking services and the promotion of emergence of an effective
and integrated national financial system that responds to the need of the whole
economy.
1.7 DEFINITION OF
TERMS
BANKER:
The bills of Exchange Act of 1882 defined a banker as a body of persons
whether incorporated or not, who carry on the business of banking and having
duly made a return to the commissioner of inland revenue, and also any savings
bank certified under the Acts relating to savings bank and also any post office
savings bank.
COMMUNITY BANKS
A community bank is a financial
institution established to cater to the saving and credit needs of small scale
producers throughout the country.
BANK SERVICES
Bank service is a professional
service, professional service marketing involves all organized activities and
programme by professional services designed to retain present customers and
attract new ones by sensing, serving and satisfying their needs through the
delivery of appropriate service on a paid basis in a manner consistent with creditable
professional goals and norms.
TECHNIQUES
This is a manner of artistic
execution, the part of artistic work that is reducible to formula, mechanical
skill in art or the doctrine of the arts.
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