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 344
- Downloads 10
Measuring Service Quality using Servqual Model in Pakistan
The study intends to investigate the level of service quality in PCBs using the Servqual model in Pakistan. The Servqual model has been used due to its authenticity for measuring service quality gaps. By using factor a...
A Proposal for Creating Real Effective Exchange Rate Monthly Frequency Series for Albania
The present work is trying to cover the need for a Real Exchange Effective Rate in Albania. The bank of the country didn’t tend to keep this series which is important for competitiveness measure, encloses political risk...
Fiscal Adjustment in Times of Crisis: The Case of the Euro-Area
Countries in the European Monetary Union have been divided into two major blocks according to their ability to respect fiscal criteria and ensure sound public finance. The widespread belief is that this ability influen...
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...
Bankers Perception of Economic Determinants of Non-Performing Loans in Ghana
The study looks at perception of bankers on economic variables causing Non-Performing Loans (NPLs) in Ghana since 2005. The research was design to use primary data collection from bankers who evaluate loans and approvi...