Abstract:
The Bank of Ghana introduced the rural banking scheme in the country in 1976. This was done after a comparison study of urban and rural areas revealed there was a gap in terms of financial intermediation between the two areas. The main goal of the scheme was to fill the gap that existed in the rural areas so as to ensure development in their respective spheres of influence. From its humble beginnings the number of rural banks has grown or increased. However it has been noticed that most of them are establishing agencies in the urban areas. One begins to wonder whether this trend is going on at the expense of the rural areas because that gap is still apparent. This study therefore examines the roles of those rural banks with respect to what is expected of them. It also looks particularly at the roles they are performing in terms of local economic development
Description:
The economy of Ghana is rural based. Without the development of rural areas of the country, one cannot think of its overall development. Majority of rural people spend their life below the poverty line and it is evident that their economic and social status are falling day by day. Earlier researches have shown that there exist a vast difference in the delivery of socio-economic facilities between the rural and urban areas such as schools, hospitals, roads etc all in favor of the urban areas.
