A community bank is a depository institution that is typically owned and operated. Community banks tend to focus on the need of the businesses and families where the bank hold branches and offices with the aim of profit maximization sending decision are made by families, businesses and farmers, the employers often reside within the communities they serve.
In the united states community banks are defined as independent banks and saving institution and bank saving institution holding companies with aggregate assets less than $ I billion from 1985 to 2004 the comprised 94% of the banking industry community bank is a bank that get its deposit from friends, neighbors and customers it makes loan within them and every other business ventures.
Furthermore, on
this need for establishment of community bank in Ohaozara Local Government
Area, is based on research carried out between February 2012 to March 2012, in
which some relevant data were collected, and they were made through interview
with forty (40) communities which is made up of over 700.000 people whom are
rural residence (farmers, artisans, student, petty traders, vehicle mechanics
etc), the data were collectively gathered in the 3 major communities that make
up Ohaozara which include, Uburu, Ugwulangwu, and Okposi, with her sub
communities and also discovered that they lack bank and it is the most pressing
need in the entire community of Ohaozara Local Government Area, in order to
prevent the risk of taking or carrying
money about and other valuable and as well acquiring or securing credit
facilities within the local government area, save time and energy, more
investigation will be observe bellow.
PRODUCT
There is a need
for bank existence, as bank is a financial institution, whose primary business
and function is to collect valuables from the public and also invert in the
financial asset like loams, mortgage stock, bond, leases and insurance policy.
They tend to
obtain deposit from local individuals and businesses and lend them out to local
borrowers finding around their location. Community bank is designed to getting
people to look at moving their money to smaller independent community banks,
and asset are held between N10 million
and N1 billion .
The service
rendering will be ensured by means of account creation, issuing of credit
cards, cheques (mainly secured by customers passport) and all relevant
deposition that could be needed by interested users and concerned customers.
Bank can also be
seen as an organization or financial institution that has the regular practice
of accepting deposits of value commodities i.e. cash, precious metal, document
etc from general public with it returns on demand and for which interest is
charged, or paid.