IMPACT OF COMMUNITY BANKS ON RURAL DEVELOPMENT (A CASE STUDY OF UMUEZE COMMUNITY BANK ENUGU).

ABSTRACT
The establishment of community banks by the Federal Government with particular reference to Umueze Community Bank Enugu was necessitated by the desire of Government to improve the standard of living of the urural dwellers and to encourage rapid development of the communities.
It is in realization of this objectives that this study is being carried out to ascertain the impact of these community banks on rural development.
Also the study is designed to determine the performance the community bank and the commitment of the staffs to realize this set objectives. The inscriptional survey method was used for the study with some fractional number of the total members of Umueze Community Bank Enugu. Both primary and secondary data were combined in collecting information used for this study.
A total number of 20 questionnaires were given our, though not all were returned and the information collected were very useful in achieving the objectives of this research.

1.1 BACKGROUND OF THE STUDY
This study deals with the impact of community Banks on rural development. But the study is on the Community Bank in Enugu North Local Government.
In recent past, our rural dwellers have been finding it very difficult to save their money and other valuables in the Commercial Banks in urban areas. This is because of the enormous paper work involved in opening a savings accounts and also distance in moving from where they are living to an urban location of commercial banks. Community Banks are established financial institution to cater for the savings and credits needs of small scale producers throughout the country. Inspite of government policy such as agricultural credit guarantee scheme, local dwellers face the constraint of not having a collateral to put down as a security before loans could be secured.
Conclusively, the commutative effect of these trends above include; low productivities, slow pace to development of the rural areas low accumulative capital to finance small scale businesses.

1.2 STATEMENT OF PROBEMS
Rural development is now a matter of crucial concern in most developing countries in general and Nigeria in particular. Indeed the problem is to ensure that community banks has adequately impacted the rural communities. However, some of these problems are:
(i) What impact has the Community Banks creates in rural dwellers.
(ii) Are the banking habits of local dweller improved.

1.3 OBJECTIVES OF THE STUDY
This study is aimed at investing the impact of Community Banks on rural development. It is also aimed at showing how Community Banking system had stimulated earning culture to the populace. To identify the rapid enhancement of development productive activities in rural and urban areas. To identify the improvement of the economic status of small producers in the informal sectors of the national economy of the rural community.
Conclusively, to suggest solutions and possible recommendations that would enhanced and speed up more development in the rural areas by the operations of the community banks.

1.4 RESEARCH QUESTIONS
i. Are Community Banks really a modernization and simplification of an otherwise sophisticated banking system.
ii. How has the operation of community banks serve the development needs of the grassroots people.