ABSTRACT

This research study centers on Analysis of rural savings mobilization of micro fmance banks in Abia State, Nigeria. The inability of formal fmaneial institutions in providing basic financial services and their inability to efficiently mobilize savings in rural areas propelled the researcher to write this work. In carrying out the study, field survey was adopted and relevant data were obtained through the use of personal interview and use of well structured questionnaires. The hypothesis was tested using regression techniques and other data analysis and interpretation based on the socio-econornic characteristics of the respondents; shows that there is significance positive relationship between education, occupational statues, age, level of savings in microfinance banks. On the other hand the relationship between microflnance savings and consumption expenditure, distance to bank, tax amount, house hold size and gender are negatively significant. Simple descriptive statistics and multiple regression analysis was use in analyzing the data. Four functional forms were presented and linear function produced the best fit as it gave a highest number of significant variables in view of these result, this researcher therefore recommends that Government, NonGovernmental Organizations and other agencies should put up a welfare package for rural dwellers. Also micro finance banks should expand its financial services rendered t these rural respondents to reach out to a greater number of people who will save permanently with them. The momentum of the microfmance banks should be sustained and scheme should be properly managed for micro finance deveiopmnt goals of eradicating poverty by 2015. In order to achieve savings objectives of micro finance banks, the recommendation in this research work should be strictly carried out.