THE IMPACT OF COMMUNITY BANK ON THE ECONOMY OF NIGERIA
 ABSTRACT
This project work was about the impact of community banking on the economy of Nigeria: a case study of Auchi community bank. In undertaking this project work research questions were administered to both respondents and staff of the bank from the study it was confirmed that the respondents were aware of the community bank of Auchi. The services offered by the bank were provision of credit facilities keeping valuables, credit deposit mobilization  
TABLE OF CONTENT
CHAPTER ONE
Introduction
Background to the study
Statement of problem
Objectives of the study
Significance of study
Research questions
Scope of the study
Limitations of the study
Definition of terms
CHAPTER TWO
Review of related literature
Objectives of community banking
Community banks
Problems of community banking system
Solutions to the problems
CHAPTER THREE
Methodology and procedure of study
Research design
Population of the study
Sampling of the study
Sample technique adopted
Instrumentation
Method of data collection
Method of data analysis
CHAPTER FOUR
Presentation of data and discussion of results
CHAPTER FIVE
Summary, Conclusion and Recommendation
Summary
Conclusion
Recommendations  
BIBLIOGRAPHY
QUESTIONNAIRES
CHAPTER ONE
INTRODUCTION
BACKGROUND TO THE STUDY
          A community bank in Nigeria is self-sustaining financial institution owned and managed within a community to provide financial services to that community. The national board for community banks (NBCB) processes applications for the establishment of community banks. The first community bank commenced operation in December 2000 since then NBCB has issued provisional license to 1, 366 community bank and are expected to be issued final licenses by the CBN after operating for two years. As at the end of December, 2002 there were 90 licensed insured banks, 282 licensed community banks 74 licensed primary mortgage institutions and 6 development financial institutions (DFLS). All these institutions (within the exception of DFLS) take deposit from members of the public in one form or the other. However, for all purpose, the universal banks constitute the hub of the banking and in fact, the financial services industry. The community banks are unit banks by design and expected to focus on small savers in their host community. The rural areas almost 75% of Nigeria contributed substantially about 92% of the nations agriculture products knowing well of this visible and immeasurable contribution the rural dwellers who are predominantly farmers are denied of any government support in terms of increased institutionalization of agricultural credit, concessionary interest rate policy, flexible condition on borrowing incentive to farmers, decentralization of institutional agencies, improved credit system, great reliability in supply of agricultural credit, negative action against defaulting credit institution.
From the above, this research will be carried out under an investigative analysis on what reform the federal government is enunciating the community banking programmes in the rural community which will be followed by an identification of all allied strategies and their relevance to the revamping of the dwindled rural economy in the face of the deregulation of the Nigerian economy. It is necessary to study how the non institutional financial sector complements the current development strategies. This study also intend to evaluate the challenges inherent in the operations of the community banking.    
STATEMENT OF PROBLEMS
Despite the recognition given to grass root operators by the government through the establishment of the community banking programmes it appears that such gestures is yet to be accepted by the rural operators. And on the other hand, informal financial sector has not received any support even when it clamors for such obviously because of the emergence of the problems ridden development strategies or programmes. Some people have jointly expressed their view over the government reckless neglect of the informal financial institution. The institutions are consistently starved of funds and it limits the scale of economic activities. It can support and it is equally believed that inadequate liquidity and difficulty in identifying the structure of interest rates are some of the problems facing the institution.
Gain (1991) holds that the establishment of development programmes aimed at rejuvenating from it limbo, the rural sectors by the stampeded Babangida’s administration is nothing but a ruse to hood work and mislead the innocent, the aggrieved and the oppressed. According to Solarin, community banking is a window dressing that lack substance. The he seriously believed that the programmes were more conceptual expression existing only in the contemplation of government imagination.  
PURPOSE OF STUDY
Among the objectives of this study are:
a.                 To appraise the community baking in the development of Nigeria economy in Auchi community bank.
b.                 To suggest ways of improving on community banking in the study area.
c.                  To find out if the financial need of the rural operations are adequately catered for.
d.                 To know how the record priorities in terms of investment activities.  
RESEARCH QUESTIONS
This study will be guided by the following:
a.                 What are the services your bank provides for Auchi area?
b.                 What are the problems of community rural banking in the area?
c.                  How does your bank facile these problems?   
SIGNIFICANCE OF THE STUDY
This study will be of importance to the community banks because it will enable community banks to adjust their credit delivery system to match the environment situation and circumstance of the rural operations. The study will be useful to government and the credit seekers because it will enable government to create a new orientation and initiate measures to sanities the operations of the existing programmes and then express credit seeker to many source of short term fiancés.  Finally the study will help future researchers as in areas of seeking information.
SCOPE OF STUDY
The study was the impact of community banking on the economy of Nigeria: a case study of Auchi community bank, Auchi. The study among other things covers the antecedent to community banking, nature and characteristics of the informal savings pattern. The study also covers the expected roles of community banks to rural development, the emerging peculiarities and the complementary of community banks with informal units.
DEFINITION OF TERMS  
Bank: It is an organization offering financial services, especially the safe keeping of money.
Banking: Banking is the business of accepting deposits and lending money to customers. It is a trade like other business concerns because it has customers which are transacts business.
Community: A community “sentiment area” with emphasis upon affective interrelationship or it is a group of any size whose member’s ahs a consciousness of living a common life and sharing common destiny.
Development: Development can be seen as a change from one state to another to the extent that the new state is different from the formal in terms of developing.