A COMPARATIVE STUDY OF THE PERFORMANCE OF PEOPLE'S BANK AND COMMUNITY BANKS IN KADUNA STATE
A COMPARATIVE STUDY OF THE PERFORMANCE OF PEOPLE'S BANK AND COMMUNITY BANKS IN KADUNA STATE
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Date
1994-10
Authors
ASOWO, AYODEJI OLUFEMI
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Abstract
It is an accepted fact that banks are instruments for stimulating and inducing
development in both formal and informal sectors of the economy. Banking in
Nigeria from it's inception which dated back to the colonial period had been urban
orientated. This is due to the fact that the primary objectives of establishing these
banks were to facilitate trade and commerce with the metropolitan headquarters.
Efforts made by the government to extend banking services to the rural
areas through rural banking was rebuffed by the conventional banks. Establishment
of People's Bank and introduction of Community Banks were therefore a direct
consequence of the marginalisation of the low income group and rural areas of the
economy.
These banks have been able to inculcate banking culture in the people,
extend credit facilities to the less privileged members of the society and
complement government efforts in improving the productive base of the economy.
The study has compared the performance of both People's Bank and
community banks in Kaduna State. The research shows that both schemes have
achieved tremendous success. The operations of the two types of banks were
examined through data collected from questionnaires administered for bank officials
and their customers.
Community banks appear to have gained more acceptance because of the
community ownership, while People's Bank suffered because of bad publicity.
However, both banks have been able to deepen the process of monetising the
Nigerian economy down at the grassroots. This has enabled the informal sector to
become part of the mainstream of the economic process in the country.
People's Bank could still be revived if adequate publicity is given to its
activities and if the government encourages private participation in its shareholding,
while community banks will consolidate their success in the state if they are not
allowed to be hijacked by rich individuals. Community banks are in a position to
obviate the profound shortcoming of the CBN rural banking scheme. They should
however adopt a more expeditious approach in public enlightenment of their
activities, systematic manpower training and creation of a favourable rapport with
local communities.
Description
A PROJECT SUBMITTED TO THE POSTGRADUATE SCHOOL, AHMADU BELLO
UNIVERSITY, ZARIA, IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE
AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION. (M.B.A.)
DEPARTMENT OF BUSINESS ADMINISTRATIS
FACULTY OF ADMINISTRATION
AHMADU BELLO UNIVERSITY
ZARIA.
OCTOBER, 1994.
Keywords
A COMPARATIVE,, STUDY,, PERFORMANCE,, BANK,, COMMUNITY BANKS,, KADUNA STATE