ABSTRACT

Dwindling nature of deposits mobilization in microfinance industry necessitated this study. It is to establish the effect of deposit mobilization on the financial performance of micro finance banks in Nigeria: A study of Umuchinemere Pro-credit micro finance bank Nigeria limited 2005 - 2014. The main objective is to examine the effect of customer deposit on the financial performance of the bank and one specific objectives. Two hypotheses were formulated, two research questions, The research design used is ex-post facto. The population of the study was all microfinance banks in Enugu and a sample of one (1)microfinance bank was considered. The data was sourced from the annual report of Umuchinemere pro-credit micro finance bank. Regression analysis and correlation techniques were used to analyse the data. The analysis was carried out using statistical package for social sciences(SPSS).One of the findings of these work is that Customer deposit has effect on the financial performance of Microfinance bank in Nigeria and that Interest rate charges has effect on the financial performance of Microfinance bank in Nigeria. In conclusion Micro Finance Banks are essential in the development of financial system in Nigeria. I recommend that the bank should give due emphasis to its deposit mobilizing tasks since mobilizing deposit is a way to survival and managing deposits is not possible without knowing and controlling the fundamental factors affecting it.