Impact of Microfinance Banks on Income Earning Activities of Rural Dwellers in South Western Nigeria
Journal Title: International Journal of Financial Markets - Year 2014, Vol 1, Issue 4
Abstract
Due to the in ability of the conventional commercial banks to fulfil their financial obligation towards the rural dwellers in terms of their micro businesses. These loopholes have led to the establishment of micro finance scheme (formally community banking scheme) to integrate the existing non-bank financial institutions like, revolving loan scheme, cooperative societies and other financial media in the rural areas into the main stream of the national financial system. The paper is out to examine the impact of micro finance banks on the income earning activities of rural dwellers in Nigeria using primary data collected through questionnaires from two states purposively sampled from the six states of the south west geo-political zone of the country (Nigeria). For the analysis of the data, descriptive statistical methods (the simple percentages) were used and the chi-square method was used to test the formulated hypotheses. The findings indicate that the availability and activities of micro finance banks have improved savings mobilization of the rural dwellers and in fact, the banks in question have really impacted positively on the income earnings of the rural dwellers. It is therefore recommended that microfinance banks should always monitor their clients‟ projects right from the beginning to the end as an improvement on their past performances. Also, professional advice should always be given where needed to their customers since majority of the rural dwellers patronize the micro finance banks more than they do to the conventional commercial banks.
Authors and Affiliations
Ayodele Thomas D.
Keywords
Related Articles
- EP ID EP28709
- DOI -
- Views 354
- Downloads 10
Dividend Policy in Ghana: Do Boards Comply?
This paper seeks to investigate whether directors of firms listed on Ghana Stock Exchange (GSE) conform to laws governing dividend policy during the period of 2001-2012. Generalized Least Squares (GLS) was used in the...
Credit Risk Management and Its Impact on Financial Performance of Listed Banks in Ghana
The study empirically examines the impact of credit risk on performance of banks in Ghana. In the study parameters covered were; default rate, cost per loan assets and capital adequacy ratio. We used 9 banks listed on...
Relationship between Indian Stock Market Performance and Macroeconomic Variables: An Empirical Study
Macroeconomic variables have long been hypothesised to significantly affect stock market performance. But no consensus for this relationship exists in case of developing markets. We examine the short and long run dynam...
Impact of Financial Constraints on Growth and Development of Small and Medium Enterprises in Sialkot Pakistan
This study is carried out to explain the underlying impact of financial constraints on growth and development of SMEs in Sialkot. It explains how SMEs in Sialkot are facing problems related to access financial market a...
The Neoclassical Asset Pricing with Special Reference to BlackScholes Option Pricing
The idea of dividends and returns discounted infinitely into the future for a financial asset is very shaky, because it makes impossible information demands on our knowledge of future dividends and returns. The idea th...