THE IMPROVEMENT OF BANKING HABIT OF RURAL DWELLERS BY COMMUNITY BANK

INTRODUCTION
The establishment of the community banking system in December 1990 is an attempt to resolve the perennial problem of unavailability of credit facilities to the  rural producers. In the past eight years, the 1014, community bank that are operational in the country show that the economy has a special place for them, the community are unique because of their community ownership and special clients. The community banking system has been tested and it has shown resilience as a result of its unique community ownership which does not allow them to die easily even when they are experiencing spill – over effect of a distressed economy. The rural small scale producers and other information economic operations are very critical for the growth of Nigeria economy. Effort at integrating these groups of people into the management of the national economic have been divers but with little positives effects. Programmes ranging from direct interactions in production such as in agriculture, creation of employment and micro credit for the poor have been embarked upon at different times. The low – level education and outright illiteracy of the rural people have made participation difficult. The rural people have preferred using their old but functional local credit mobilization system which through informal, serve their purpose. In many part of Nigeria, the system is known as “aju” or “isusu” or “bam” and adashe” the main characteristics of these local system are voluntary contributions from members on daily, weekly or monthly basis. Such monies collected are given out as loans top needly members according to the rules, nominal interest are charged on the loan. Where any member defaults, appropriate and mutually accepted sanctions are imposed. In spite or rapit modernization of the banking system with many attractive products, the influence of these local credit institutions is still very high among the grassroots people. The conventional bank  continue to regard them as high risk fund borrowers and users. The cost of administering such credit to the poor is not profitable for them, they claim. Sustainable development at the grassroot level of difficult to achieve because of the lack of proper economic structures and policies. This then is the vacuum that the community banking system came to fill.
TABLE OF CONTENTTITLE PAGEIIAPPROVAL PAGEIIITABLE OF CONTENTVI
CHAPTER ONE1.1INTRODUCTION11.2BACKGROUND OF THE STUDY31.3STATEMENT OF THE PROBLEM41.4OBJECTIVES OF THE STUDY61.5SIGNIFICANCE OF THE STUDY71.6SCOPE AND LIMITATION OF THE STUDY81.7DEFINITION OF THE TERM8
CHAPTER TWO2.1AN OVERVIEW OF BANKING HABITS102.2INTRODUCTION102.3THE MEANING OF BANKING122.4THE IMPROVEMENT OF BANKING HABITS152.5THE IMPORTANCE OF BANKING BY RURAL DWELLER15
CHAPTER THREE3.1SUMMARY243.2CONCLUSION28BIBLIOGRAPHY33