STATISTICAL SURVEY ON THE EFFECTIVENESS OF COMMUNITY BANK OPERATIONS SERVICES IN RURAL AREA DEVELOPMENT

ABSTRACT
As community bank was introduce to promote development in rural areas by providing financial and banking services to them. The aim to carry out the study came from the failure of conventional banks (commercial and merchant bank) to open up branches in the rural area. The study therefore is to design a look into the effectiveness of community bank in a rural development, which was created to fill the gap caused by the reluctant of conventional bank to establish branches in the rural areas. This study recommended that government should try their possible best to provide more community banks and empower them with modern facilities, while the community bank should bring new ways or techniques for more effective and efficient services.

Background of the Study
In Nigeria today, there is a pronounced distinction between rural and urban standard of living. There are manifest disparities in population structures, employment opportunity outside the traditional sector and level of per capital income as well as in the overall living standard (Agbadudu, 2004).
The enhancement of rural development bank depends largely as the level of rural economic activities mindful of these facts, various programs lies at stimulating rural economy, which have been embarked upon by different Federal enterprises (Nwakwo, 2009).
Apart from the establishment of mass development banks, the Central Bank also made it mandatory for every commercial banks to set up branches in rural areas. Inspite of these measure nothing substantial has taken place in rural area due to complex banking regulations such as: quantitative receiving on banking credit selective central, discount rate etc. rural banking still depends on the old primitive method of banking.
The difference between microfinance bank and the commercial bank is more in the name of ownership, by the instrument establishing it, microfinance bank is owned by the community entirely, who have been however observed that if microfinance bank is well managed, it will help and encourage rural industrialization, it will also reduce rural urban drift and will help to increase the people per capital income and raise their standard of living.
Development and continuous development is goal which every nation aspires to achieve and when it is achieved every one shares in the glory. Most nation development tends to concentrate in the urban areas but a nation is related highly when its development extends to the rural areas. In Nigeria, people in the rural areas are predominantly peasant farmers who produced the highest percentage of nations food and yet there is no significant development of the rural areas. There are no good roads, electricity, and good water supply among things. The banking industries help in no small measure in brining development to any country therefore, in a bid to an extend this development to the rural areas.

The community banking system was introduced in Nigeria in 1990. The proper masses in the rural areas who are majority involved with agricultural production need finance and social amenities, which are supposed to make their work and life easier, therefore, there is need for more emphasis to be laid on establishment of community bank to see if those problems encountered in the rural areas could be solved and rural exodus brought to a standstill.
Adekanye (2004) in his book “Element of banking” stated that the idea of development bank was established to increase agricultural output and productivity. The improve efficiency in the use of scarce land and water resources to enhance more efficiency use of capital resources. Equitable distribution of income all of which gear up to raise the standard of living of the rural population.