Community banks were established in Nigeria to help remedy the rural development problem that has been facing Nigeria since after World War II.

The fundamental concepts of a community bank is of a self sustaining financial institution, owned and managed by community or a group of communities for the purpose of providing credit deposit, banking and other financial services to its members.

The objectives of the research work therefore covered the pace of providing financial and banking services and other facilities to communities that were inadequately supplied with such services, the rapid enhancement of the development of productive activities in rural areas, the promotion of emergence of an effective integrated national financial system that responds to the need of the whole economy from individual and grassroots community level through level of local government areas and states to the national level.

The study also covered the problems encountered by these banks in carrying out their functions and then the recommendations of the possible solutions.