Abstract:
Rural banks have been established to mobilize rural funds and assist the rural folks with credit facilities mainly in their productive activities.
Therefore the study “The Contributions of the rural banks to the rural economy” set out to analyse the activities of the rural banks using Nsutaman rural bank as the case study.
The objectives of the study was to evaluate the activities of rural banks in line with their stated objectives, to determine their contributions of rural banks in respect of the various sectors of the rural economy and to assess the challenges facing the banks in their operations and suggest ways to mitigate the problems.
The study adopted both primary and secondary techniques to gather data from various sources and used tables, charts and other computer software’s like excel and the SPSS to analyse data that were gathered.
Description:
Financial institutions are established to meet the financial needs of the society in which they operate. In most developing countries, capital requirement of business enterprise greatly exceed financial resources owned by the individual entrepreneurs The government through the central bank in such countries are therefore expected to encourage and assist in the establishment of banks in order to meet the credit needs of the community.
The rationale behind the formation and spread of such institution in different parts of the developing countries seems to mean that such a strategy would contribute substantially to the rate of economic development .this view seems to be well entrenched in the mind of public spirited Ghanaians who arecitizens. These request appeared to have been met at various stages during the past four decades since 1957 when Ghana attained political independence. The country today boast of a number of financial institution including a central bank, commercial banks, commercial banks, development banks (example Agricultural development bank),investment banks or specialized banks and other financial intermediaries.
