THE NEED FOR BANKS IN RURAL AREAS

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THE NEED FOR BANKS IN RURAL AREAS

CHAPTER ONE

INTRODUCTION

BACKGROUND TO THE STUDY

Banking service when introduced in our rural areas will bring development or specifically economic development to the doorstep of every citizen in this country since between 70 – 80 percent of Nigerians lives in the rural area.

Every Nigeria want to go to the urban area because of availability of infrastructural amenities like electricity, good roads, pipe borne water, civilized market operation, job opportunities and so on. If these social amenities continue to exist in urban areas, life in rural areas will still remain underdeveloped. Money they say is the blood that nourishes or gives life to any prosperous economy of a nation. For money to accomplish its aims in an economy, it needs to be properly managed and controlled in the banking sector.

Agriculture is the second major sources that generate revenue to the Nigeria government after oil industry. The sector of the economy right from time has been neglected. The rural areas have not felt any positive impact on the development plan but only recorded a decline in agricultural productivity, which shows that the rural areas have been neglected at the expense of the urban areas.

The banking industries one of every nations sectors that has a controlling impact on the economy particularly in terms of monetary policy, this is why federal government has continuously encouraged banks to expend their services and facilities not only to the urban cities but also rural areas.

STATEMENT OF THE PROBLEMS

For many years ago government is running in low banking around the national and /study to look into it, and find out that, there is a needs for the government to establish more banks most especially in the rural areas in our country and further said if government can done that so as to bring banking activities near to the people in the rural areas. Mostly, of the problems that is facing some individuals in that areas is save and they find it too difficult to saved their money a home because of high rate of thefts in that areas (rural area) and there is some individuals who need to invest their funds in Banks in that area but there is know banks in there. So from this my study government will know the needs of banks mostly in rural areas of our country Nigeria, and through the needs to established banks in rural areas it will give some individuals/impetus to invest their funds for futuristic purpose.

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