The main focus of Community Bank in Nigeria
Most communities in Nigeria are still seriously in the dungeon of realizing tangible development. Underdevelopment according to a professor is a stage of development that most communities in Nigeria are still striving to achieve and that modern conveniences; application in social life have not yet been achieved. So the community bank was created to reach the rural areas by decree 46 of 1992 but it started operations in 1990. This is to supersede the banking scheme in Nigeria and operate as a banking unit.
The Community Bank was introduced or rather created to achieve the following:
- To accelerate rural development: One of the sole responsibilities of a community bank is to help accelerate development in rural areas. Rural development is very important for the development of the entire nation; this is because the impacts of government activities are also felt by rural residents. The presence of these banks in the areas will definitely improve the economy of the community and its surroundings.
- To limit moving between rural and urban areas: One of the issues of great interest to the government is how to control rural-urban migration. Excessive immigration to urban areas will lead to increasing problems, especially in terms of amenities for urban areas. One of the ways the government is using to deal with this is to set up community banks in promising rural areas to serve people’s financial needs. There is a possibility of reducing the traffic between rural and urban areas with this.
- To provide credit facilities: One major challenge faced by the hardworking rural man is lack of funds to implement his business plans. To be frank, this has greatly contributed to the development of snail speed in Nigeria, especially in the rural areas. The establishment of community banks in these rural areas will ensure that local residents have access to timely credit facilities, in a very convenient repayment mode. I mean it greatly improved the conditions of the villagers.
The basic principle of community bank operations is to identify itself solely with the economic condition of the community in which it is located; the plain fact is that many of these banks have long since left this path. But regardless, the few that remain still have a viable connection that fosters the community it serves; thus, each bank, serving its particular area, contributes to the overall development of the banking system in the economy.
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