Causes and Effects of Rural Banks in Rural Development Eastern Region, Ghana
DOI:
https://doi.org/10.59890/58ypmq28Keywords:
Rural Banks, Rural Development, Economic Empowerment, Poverty Reduction, Sustainable DevelopmentAbstract
Rural banks play a pivoted role in Ghana's economic development, particularly in rural areas where they provide essential financial services. This review examines the causes and effects of rural banks in promoting rural development in Ghana's Eastern Region. Rural banks increase access to financial services, enabling rural dwellers to save, borrow, and invest. By providing credit facilities, rural banks empower individuals and businesses to grow and develop. Rural banks contribute to pverty reduction by providing financial services to low-income earners. Access to financial services improves rural livelihoods, enabling individuals to invest in education, healthcare, and businesses. Rural banks stimulate economic growth by providing credit to small and medium-sized enterprises (SMEs). By supporting rural development, rural banks contribute to sustainable development and reduce urban-rural disparities. Rural banks face challenges in accessing capital, hindering their ability to provide adequate financial services. Rural banks need to manage risks effectively to maintain financial stability. Above all, rural banks are crucial for promoting rural development in Ghana's Eastern Region. By providing financial services and empowering individuals and businesses, rural banks contribute to economic growth, poverty reduction, and sustainable development. Addressing challenges facing rural banks will enhance their impact on rural development
References
Abor, J., Quartey, P. (2010). Issues in SME development in Ghana and South Africa. International Research Journal of Finance and Economics, 39, 218-228.
Agyei, S.k.(2016). Financial performance of rural banks in Ghana: A review. Journal of Banking and Finance, 62, 137-146.
Ansong, A., & Boateng, E. (2017). Access to credit and rural development in Ghana. Journal of Rural Studies, 51, 137-146.
Asmah, E.E. (2015). Financial Inclusion and poverty reduction in Ghana. Journal of Development Studies, 51(6), 734-746.
Karlan, D., & Zinman, J. (2011). Microcredit in theory and practice using randomized credit scoring for impact evaluation. Science, 332(6035).1278-1284.
Kusi, B.A., & Ansah, E.K. (2018). Financial management practices and sustainability of rural banks in Ghana. Journal of Financial Management, 45(2), 34-44.
