Characteristic of Rural Areas
Characteristics of rural areas used
Rural areas are large and isolated areas of an open country with low population density
ECONOMIC GROWTH used
Economic growth can simply be defined as A positive change in the level of production of goods and services by a country over a certain period of time
Economic growth is the increase of per capita gross domestic product (GDP) or other measure of aggregate income, typically reported as the annual rate of change in real GDP. Economic growth is primarily driven by improvements in productivity, which involves producing more goods and services with the same inputs of labor, capital, energy and materials
Statement of problem
Rural banking failures
Problems of rural banking
Importance of rural banking
Rural banking is a common practice in places where banking institutions are few and far between, and people who need to carry out banking transactions may have difficulty finding a way to do so. With modern technology, more and more people have access to online systems that allow them to conduct certain types of banking without a nearby branch, but this technology is not available for everyone, and demand for rural banking is still high in some areas.
• Rural banking is the process of conducting banking transactions out in the country where bank branches are too far away to be of use. Rural banking is popular for very small towns and farmers who live far away from areas of larger population and cannot make the drive to these locations whenever they need to use banking services. Typically, an agent of the bank will visit these rural locations and offer to make transactions in an official capacity.
Importance of commercial banks(justification)
Lending and Credit
• When banks accept personal deposits and aggregate them, they typically only keep a low percentage of deposits on-hand and lend out as much as possible. Loans earn the bank money in interest