The Decree 46 of 1992 created the National Board for Community Banks which was granted the power to license community banks. Community banks were created to: (1) promote rural development through provision of banking and financial services, (2) enhance rural productive activities, and (3) improve economic status of small-scale producers in rural and urban areas. According to Marx (2004), Nigeria has a dynamic informal financial sector. A key to growth strategy is to assist the development of this informal sector. The recent government policy to rid the economy of community banks defeats the original purpose underlying the creation of community banks. In view of the important role of community banks in Nigeria, the authors propose that community banks should continue to be rural financial institutions with specialized methods to serve broad segments of the rural population. The National Board for Community Banks should be vested with power to license, monitor and regulate community banks, and the regulatory power of the Central Bank of Nigeria over community banks should not go beyond that necessary for the performance of its monetary policy function. Furthermore, a partnership should be formed between the National Board for Community Banks, National Association of Community Banks and the Nigeria Agricultural, Cooperative and Rural Development Bank for the purpose of funding rural ventures through loan syndication. The Bankers’ Committee initiative for small and medium enterprises funding should be channeled through the Nigeria Agricultural, Cooperative and Rural Development Bank.

(2008). The role of community banks in economic development: a Nigerian case study [journal article - articolo]. In SAVINGS AND DEVELOPMENT. Retrieved from http://hdl.handle.net/10446/27408

The role of community banks in economic development: a Nigerian case study

2008-01-01

Abstract

The Decree 46 of 1992 created the National Board for Community Banks which was granted the power to license community banks. Community banks were created to: (1) promote rural development through provision of banking and financial services, (2) enhance rural productive activities, and (3) improve economic status of small-scale producers in rural and urban areas. According to Marx (2004), Nigeria has a dynamic informal financial sector. A key to growth strategy is to assist the development of this informal sector. The recent government policy to rid the economy of community banks defeats the original purpose underlying the creation of community banks. In view of the important role of community banks in Nigeria, the authors propose that community banks should continue to be rural financial institutions with specialized methods to serve broad segments of the rural population. The National Board for Community Banks should be vested with power to license, monitor and regulate community banks, and the regulatory power of the Central Bank of Nigeria over community banks should not go beyond that necessary for the performance of its monetary policy function. Furthermore, a partnership should be formed between the National Board for Community Banks, National Association of Community Banks and the Nigeria Agricultural, Cooperative and Rural Development Bank for the purpose of funding rural ventures through loan syndication. The Bankers’ Committee initiative for small and medium enterprises funding should be channeled through the Nigeria Agricultural, Cooperative and Rural Development Bank.
articolo
2008
Les banques communautaires au Nigeria ont été crées pour promouvoir le développement rural et améliorer les conditions des petits producteurs ruraux et urbains à travers l’offre de services financiers. Au Nigeria le secteur informel est dynamique, une stratégie clé pour la croissance est le développement de ce secteur. En vue de l’importance des banques communautaires, les auteurs proposent que ces banques doivent continuer à opérer au niveau rural, sous la supervision du Conseil National des Banques Communautaires. La Banque Centrale devrait limiter son activité au control fonctionnel à la politique monétaire. Les auteurs suggèrent aussi une coordination des acteurs qui opèrent au niveau rural pour le soutien financier des opérateurs ruraux.
Ayadi, O. FELIX; Hyman, LADELLE M.; Williams, Johnnie
File allegato/i alla scheda:
File Dimensione del file Formato  
AYADI 2-2008.pdf

accesso aperto

Versione: publisher's version - versione editoriale
Licenza: Licenza default Aisberg
Dimensione del file 178.1 kB
Formato Adobe PDF
178.1 kB Adobe PDF Visualizza/Apri
Pubblicazioni consigliate

Aisberg ©2008 Servizi bibliotecari, Università degli studi di Bergamo | Terms of use/Condizioni di utilizzo

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/27408
Citazioni
  • Scopus 4
  • ???jsp.display-item.citation.isi??? ND
social impact