The role of rural and community banks: a case study of Builsa Community Bank - Sandema

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The study has assessed the role of Rural and Community Banks in the development of rural areas by providing credit facilities and mobilization of rural savings/deposits to improve the livelihood of the rural people. It was revealed that the Builsa Community Bank in which this study is focused has performed well in providing the needed credit facilities to farmers, small businesses (traders), public/civil servants, groups and artisans to improve on their economic activities. Questionnaire and interviews were used as^the main survey instruments to solicit information from 136 credit/loan beneficiaries of the bank from five villages in the Builsa District, which generates qualitative and quantitative data for the analyses. Results have showed some improvement in the general welfare of credit beneficiaries, but employment generation and output in crop production were generally very low. There were consistent increases in bank credit facilities to the people, as well as rural savings/deposits mobilization. However the findings have shown that 85 percent of the people of Builsa are still unbanked. Large number of the population * predominantly farmers could not access the bank credit facilities due to lack of collateral security. The bank needs to introduce 'Susu' collection and sensitization of the people to take advantage of the large number of market men/women of the various village markets that fall every three days. The shareholders of the bank need to be sensitize to see the need to invest more into shares and increase their shareholdings, as well as contributing to strengthening the capital base of the bank to deliver the needed quality services to the people of Builsa.
A Thesis Submitted to the School of Graduate Studies Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfillment of the requirements for the Degree of Master of Business in Administration in Banking and Finance, 2008