Question

What role(s) are rural community banks established to play in the socio-economic development of Ghana? In your own estimation, and with specific example from your area (using a practical case) how well have they performed or are performing such role(s) in the annals of Ghana.

Answer 1

Rural banks are performing very strongly in different countries and in different economies. These kind of banking is very much needed at this time. Because rural development can be considered as the major step towards the country development. So the rural community banks are playing a tremendous role in this circumstances. They provide different kind of services for the rural development.

When we are looking into the country Ghana the rural community is highly situated there and their main source of income is agriculture. So they need help of rural banks for making their agricultur sector enlarged. It is their main source of income and so only with the help of rural community banks they can produce more. Because capital is needed for the agricultural purpose and rural banks will provide all the services which ever is needed. Dur to the inadequacy of the funds individuals are not willing to take care of farming and government also did not make any promotion for the development of these sectors. So for them producing in a large scale is very difficult only because of the inadequacy of the capital. Here we can see the advantage of rural banks. They will provide enough capital and do all promotional activities for the rural development. So a country like Ghana is highly depend on the rural community banking because their economy seeks the help from these kind of banks.

We can see many practical examples of the performance of rural banks in Ghana. Their programs are highly standardized and by looking the credit score and efficiency score they identify the need of funding in each sector. According to those plans rural banks are provide hige funds for different konds of industries in Ghana. Apart from this they provide specific credit for the development of the agricultural sector only. These are the things rural banks have done in the economy.

ThankYou.....