The Role of Microfinance Banks in A Rural Community Development

ABSTRACT

This research work study is centered on the role of microfinafl banks in a rural community. Microfinance banks are mechanism and agent of economic development as they provide financial services such as savings loan;, domestic fund transfer and other financial services; loan, domestic fund transfer and other financial services that the economically active poor, small and medium enterprise needed to conduct or expand their business. One of the major problems on the role of microfinance banks in Nigeria is inefficient and ineffective provision of adequate and access to financial services to the economically poor, small and medium. To solve the research problem, secondary data were collected. The research instrument used in collecting data was a written request (application) to Arochukwu microfinance bank. Analysis of loan and advances to all identified priority sectors of the economy. In analyzing and presenting data collected, the least square method was used. The hypothesis were tested using t-statistics, data analysis and interpretation gave the following findings, the proportion of land allocated to other sectors excluding agriculture and petty trade is larger enough to enhance their economic activists. It also discovered that loan available to agriculture and loan for petty trade are not becomes a liability them instead asset which will help grow/expand their business operation. This leading to rural economic development. Microfinance bank should increase the proportion of loan allocated to Agriculture and petty trade, thus enhancing their business operation and productivity. The momentum of the microfinance banks should be sustained and scheme should be properly managed for microfinance development goals of eradicating poverty and enhancing the economy. In order to achieve the developmental objective of microfinance banks in rural community. The above discussed recommendation in this research work should be strictly carried out

TABLE OF CONTENT

Title page

Certification

Declaration

Dedication 4,.

Acknowledgment

List of Acronyms

Table of Content vii

Abstract ix

CHAPTER ONE

1.0 Introduction

1.1 Background ground to the study

1.2 Statement of the problem

1.3 Objective of the study

1.4 Research quest:o5

1.5 Research hypothesis

Signifjcn0 of the study

Limitation of the Study

Scope of the Study

Conceptjonai definition of terms

CHAPTER TWQ

Review of related literature

2.2 Concepj definition of microfinance and micro finance bank 13-16

A global historical Context of micro finance and its evolution

Overview of flhicrofinaflce bank in Nige

Overview of nhicrofinanc activities in Nigeri

22-26 2.4.1 Establishment of microfinance bank in Nige

24.2 Roles of central bank of Nigeria (CBN) on 27-28

microfinance banks (MFBS)

2.5 Microfinaflce policy in Nigeria

2.6 The role of microfiflance bank

2.6.1 Poverty alleviation and rural development

2.6.2 Micro small and medium enterprises

2.7 Related role of micro finance credit and micro finance

CHAPTER THREE

3.1 Research methodology

3.2 Research design

3.3 Area of study

3.4 Scope of study

3.5 Validation of the instrument

3.6 Reliability of the instrument

3.7 Method of data collection

3.8

Method of data analysis (Specification of model)

3.9

Test of sIgnifican of parameter estimates

3.10 Decision rule

CHAPTER FOUR

Presentation of analysis and interpretation of data

4.1

Presentation and analysis of hypothesis

4.2 Interpretation of table 4.1.2

CHAPTER FIVE

1.1 Summary of Findings

1.2 Conclusion from the study

1.3 Recommendation

REFERENCES