ATTENTION:
BEFORE YOU READ THE CHAPTER ONE OF THE
PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE
TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO
PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN
CALL: 08068231953, 08168759420
The Impact Of Microfinance Bank In Poverty
Reduction
ABSTRACT
This work
examined the impact of microfinance bank in poverty reduction using
Cosmopolitan microfinance bank as a case study.
A cross sectional data was used to carry out this impact analysis. The ordinary least squares result revealed
that savings is the only major determinant of income level in Port Harcourt
community. Even though Cosmopolitan
microfinance bank does not extend financial services as a result of high
interest rates on borrowing and other impediments inherent in the activities of
cosmopolitan microfinance bank, our regression result revealed that
Cosmopolitan microfinance bank plays a significant role in poverty reduction in
Port Harcourt.
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
Microfinance
has gradually developed to be a worldwide movement, no longer being a subject
matter of microfinance practitioners alone.
Governments, donors, development agencies, banks, foundations,
corporations, business communities, civil societies, researchers, universities,
consultants, philanthropists and others are taking an increasing interest in it
(Sale Huddin and Hukinil, 2004).
The increasing level of acceptance of
microfinance among the various groups of stakeholders worldwide presents the
following questions: is microfinance becoming popular because it is a good
business to make money or is it a powerful tool to fight poverty or is it
because of both (Annibale and Bob: 2006).
Since the concept was born is Bangladesh almost three decades ago,
microfinance has proved its values in many countries, as a weapon against
poverty and hunger. It really can change
people’s live for the better, especially the lives of those who need it most
(Ashmawi ans El-fouadh: 2006) it has been evidenced worldwide that microfinance
helps the poor to overcome poverty and not through charity. It is a financial system that serves the poor
with financial services in a most effective and productive way.
The experience of many microfinance
institutions so far strongly suggests that it is possible for the institutions
to reach the goal of serving people in extreme poverty without having to
sacrifice their profitability. This is
mostly because microfinance is designed with the poor in mind, while at the
same time being founded on market principles of competitiveness, pricing and
sustainability. There is nothing wrong
in earning money while serving the poor, as long as earning money does not
become the prime or the only goal of microfinance providers. Microfinance
institutions throughout the developing world are proving small loans to the
poor for self-employment and providing to be sustainable enterprises in the
fight against poverty (Daley – Harris: 2006).
The global picture regarding
microfinance outreach is quite impressive from a mere 7.6million poorest
families in 1997, the micro-credit of more than 92million clients by December
31, 2004, this number includes 66.6million families who were among the poorest
when they started with a program (Adams and Ivatury: 2004): of these
66.6million poorest clients, 55.7million or 83.6% were served by the 52 largest
individual institutions, all with 100,000 or more clients. Among these largest microfinance
institutions, 79% is in Asia, 17% are in Africa and only 4% are in Latin
America.
Robust economic growth cannot be
achieved without putting in place well focused programmes to reduce poverty
through empowering the people by increasing their access to factors of
production, especially credit. The
latent capacity of the poor for entrepreneurship would be significantly
enhanced through the provision of microfinance services to enable them engage
in economic activities and be more self-reliant, increase employment
opportunities, enhance household income and create wealth.
On January 1, 2001, Nigeria joined
the ranks of developing nations adopting laws and policies to regulate the
microfinance sector. Under the new
microfinance policy of the Central Bank of Nigeria, community bank and
microfinance institutions must increase their capital base from 5million naira
(approximately 42,000 USD) to 20million naira (approximately 169,000 USD). The purpose of this policy is to create
microfinance banks that are financially sound, stable, self-sustaining and
integral to their communities with potential to attract more customers.
Microfinance is about proving
financial services to the poor who are traditionally not served by the
conventional financial services, the federal government through the Central
Bank of Nigeria established community banks in every locality.
A reversal of that led to the
establishment of microfinance banks to replace them, which is now better
constituted and equipped to function.
The Cosmopolitan microfinance bank is an example of one of these
micro-financial services institutions committed to poverty reduction within its
jurisdiction.
1.2 STATEMENT OF THE PROBLEM
In envisioning the future of
microfinance, it is important to know the rationale for microfinance
movement. Poverty focused microfinance
came into existence as a private initiative growing almost unnoticed through
process of learning by doing.
The global concern for the level of
poverty in Africa is well known to all.
Africa is have lest hit by the crippling problems of chronic hunger and
malnutrition. The great concentration of
poverty is sub-Saharan African which is also a matter of concern for all. Despite such disappointing facts,
microfinance in Africa is growing. A
broad range of diverse institutions offers financial services to low income
clients in Africa. These include
non-government organizations, non-bank financial institutions, co-operatives,
credit unions rural banks, Rotating Savings and Credit Associations (ROSCA),
postal financial institutions, and increasing number of commercial banks.
When the present administration came
into office on the 29th May 1999, it paid attention to poverty reduction. During the regime preceding this
administration, the World Bank tried to focus on poverty reduction in Nigeria
and so commissioned a study on poverty assessment in Nigeria. The study not only profiled poverty but also
established quantitatively the trend of poverty encroachment to development
from 1980 to 1986. the study showed that
poverty level in Nigeria has been extremely high, with about two thirds of the
population living below poverty line (Akanji, 2008). Consequently, mainframe economic though
established that to conquer poverty requires action at the local, National and
global levels to expand poor people’s opportunities empower them and increase their security.
This study aims to establish the need
to empower the poor, which has been estimated to be on the increase through the
operation of microfinance banks as a strategy for poverty reduction. This study intends to address the following
questions:
i What are the roles of microfinance
banks on poverty reduction in Port Harcourt town?
ii How does Cosmopolitan microfinance bank
extend financial services and credits to beneficiaries?
iii What are the impediments to
micro-financial services faced by Cosmopolitan microfinance bank?
1.3 OBJECTIVES OF THE STUDY
The broad objective of this study is
to estimate the role of microfinance banks on poverty alleviation with a
special focus on Cosmopolitan microfinance bank. The specific objectives shall include:
i To determine the impacts of microfinance
banks on poverty alleviation in Port Harcourt town.
ii To trace how Cosmopolitan microfinance
bank extend micro-financial services to customers or recipients.
iii To evaluate the likely obstacles to
micro-financial services faced by Cosmopolitan microfinance bank in the
discharge of their duties.
1.4 HYPOTHESES
The research hypotheses of the study
are:
1. Cosmopolitan microfinance bank play
significant role in poverty reduction
in Port Harcourt town.
2. Cosmopolitan microfinance bank extends
financial services and credits to potential beneficiaries.
3. There is no impediment to the discharge of
micro-financial services by Cosmopolitan microfinance bank.
1.5 IMPORTANCE AND RELEVANCE OF THE STUDY
Poverty is a hydra-headed social and
economic problem facing Nigeria for nearly half a century with diverse and far
reaching implications for current and future generations. Likewise, efforts at stemming the tide have
also been crucial among policy makers and the concerned authorities.
Microfinance is about providing
financial services to the poor who are traditionally not served by the
conventional financial institutions.
Three features distinguish microfinance from other formal financial
products. These are:
i. The smallness of
loans advanced and or savings collected.
ii. The absence of
asset-based collateral and
iii. Simplicity of operations.
To this end this study is relevant
and important to the extent that it explores the nature of micro-financial
services available in microfinance banks.
The study shall equally illuminate the derivable benefits from
micro-financial services are well as acts as guide to scholars and commentators
whose basic interest is in microfinance banks in Nigeria.
1.6 LIMITATION AND SCOPE OF THE STUDY
This study is limited to the roles of
microfinance banks on poverty alleviation in Nigeria: a case study of Cosmopolitan microfinance
bank. The analysis touched on both the
focus point as well as national impacts.
In another vein, there were limitations
encountered in the process of undertaking this study which include insufficient
materials from the focus of the study as well as time limits that affected a
better analysis of the issues being studied.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you
will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank
Account below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
AFFILIATE LINKS:
myeasyproject.com.ng
easyprojectmaterials.com
easyprojectmaterials.net.ng
easyprojectsmaterials.net.ng
easyprojectsmaterial.net.ng
easyprojectmaterial.net.ng
projectmaterials.com.ng
googleprojectsng.blogspot.com
myprojectsng.blogspot.com.ng
https://projectmaterialsng.blogspot.com.ng/
Comments
Post a Comment