CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
According to Adekanya F. (2014) Define Banking habit as the degree as which member of the public patronize banks. The regularity with which individual and corporate bodies in the society make use of banking faculties. As palne (2014), Rural banking scheme is a programme managed by the central bank of Nigeria in the 1970 and it aims at bringing banking facilities to the door step of rural dwellers. The first approach used by the commercial bank of Nigeria was mandating the commercial banks to open branches in the rural area, for example in 1977 the central bank of Nigeria mandated the commercial banks to open branches in the rural areas, for example to open 198 branches in the rural area within a period of three years July 1977 to June 1980 unfortunately the commercial banks of Nigeria guidelines. To ensure compliance the central bank of Nigeria used the power it has under section 4 under the banking Act of 1969 tied the approval for the opening of urban branches but all to no avail. Promulgated the microfinance Bank decree no 46 of 1992 which provide for the establishment of microfinance bank. The microfinance banking system is owned and managed by community or a group of community for the purpose of providing deposit, credit and other banking facilities for the members of the community. The number of microfinance banks has increased greatly from 1991 to date. By the nature, microfinance bank therefore are self sustaining financial institution owned and managed by the community or group of people for the purpose of providing credit facilities deposit banking and other financial services to its members at large on the basis of their self recreation and credit worthiness.
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