CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF STUDY

Community bank in a simple, term is a unit banking institution which is owned by people from the community or some group of individuals who contribute money as share holders to the bank thus sewing only the communities where they are situated.

The community bank implementation committee (CBIC) was inaugurated in September, 2010 by President Babangida with secretary to government of the federation AlhajiAligu Mohammed as the chairman.

The conditions set aside by the Babangida’s Regime restricts their primary services like.

Survival of the communities across the country was impossible, especially those located in the remotest areas because people were afraid to invest their hard earned money in a venture that mean a product of structural adjustment programme (SAP).

Community banks with some years in existence have recorded success because they are founded on the concept of community involvement and participation on it’s ownership and structure.

They succeeded in being flexible to give services to members who are in need rather than projects making. The community bank can open late and close late. It can open on Saturdays or market days to enable the rural dwellers that might be ignorant of other banking system contact them easily.

Furthermore, population of people in a community can pose serious danger in the development of community bank because the fewer the people in an area, the fewer market volume of the bank in that area. However, one of the major constraints in the survival of community bank is lack of proper awareness of what community banks stand for and it’s services in promoting business enterprises in rural environs.

The major purpose for introducing community banks it to assist in the development of Nigeria, starting from the grass roots (communities) especially in the rural areas, so the need for conditions restricting their primary services is uncalled for, rather should be allowed to meet the needs of the rural dwellers.

Bringing community bank to the door steps of the people, will vehemently bring the credit aiding activities like, Agricultural credit guarantee scheme, most of all the rural banking scheme since there are number of branches in the rural areas around the country in order to boost the quality of rural life.

1.2       STATEMENT OF THE PROBLEM

In this topic, “community banking and Economic development in Delta State”, the researcher would want to evaluate the complicating problems encountered by community banks in carrying out their daily programmes.

Since community banks are owned and financed by the community, they are not able to perform adequately as expected in terms of savings. Therefore a major problem is that of inadequate funds.

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