THE IMPACT OF COMMERCIAL BANKS’ ACTIVITIES ON RURAL ECONOMIC DEVELOPMENT IN NIGERIA

Abstract

Despite the countless numbers of rural development policies introduced at different times by successive governments coupled with the huge financial and material resources employed, little or nothing is felt at the rural level as each policy has often died with the government that initiated it before it starts to yield dividend for the rural dwellers. It is against this backdrop that this paper examines the impact of commercial banks activities on rural economic development and; also to determine the relationship that exists between various activities of commercial banks and the development of the rural economy and its populace. In line with the objectives, two hypotheses were formulated. The population and the sample of the study were all the Commercial banks in Nigeria. The study utilized data from secondary source. Data were obtained from the Central Bank of Nigeria’s (CBN) Statistical bulletin. The time frame for the study is twenty-eight years, covering the period of 1982 to 2010. The technique of analysis used in the data was Linear Regression Analysis. We concluded that even though commercial banks activities such as giving out loans and receiving deposit has positive impact on the rural economy, there is room for the Commercial banks to gear more of its activities towards the development of the rural economy. The study calls on appropriate authority such as the government to ensure the consistency of policies that will enhance rural development. Similarly, Bankers Committee to encourage activities by Commercial banks towards the development of rural economy.