ABSTRACT

The study was conducted in Abia State of Nigeria. The work identified saving mobilizing institutions and their distribution in the study area. It also examined the variables that affect saving mobilization as well as the performance of savings mobilizing institutions in Abia State. Twenty two rural Communities where rural banks are located were purposively selected for the study. \AJith the assistance of Bank workers, staff of Cooperatives department and ADP Staff, respondents were purposively selected from the 22 Communities. The respondents consist of 245 people who had cash savings and 94 people who held savings, in non cash forms. The study was conducted between July and December, 2003. Descriptive statistics (such as averages, percentages and frequency distribution) and the regression analysis were used for data analysis. The study identified 45 rural based banks and 2067 Cooperative Societies, which are involved in savings mobilization across the State. However, most of the banks and Cooperative Societies situate in Ohafia Agricultural zones. The variables that had significant influence on saving mobilization by banks were age of bank, minimum amount of money required for operating savings account, interest payment on savings and the projected income by banks. On the other hand, saving mobilization by Cooperative Societies were determined by the value of Cooperative reserve, value of loans granted to Cooperative members and the interest payment on saving. Though most savers prefer the institutional organizations, a good number patronize itinerant savings collectors, Workers xii Saving Groups and the thrift and Loan Associations. Age, disposable income, interest payment on saving and wealth were statistically significant in influencing cash saving of individuals. On the other hand household size distance of respondent's house to rural bank, value of asset and off-season price were significant in determining savings in non-cash form. The average cash savings by respondents who used banks varied per household in the three zones. The average savings generated by banks was N40,771,057, while the average savings generated by the Cooperatives was N3,706.12. In comparative terms, Cooperatives reached out to a greater percentage of the rural populace (5.70 percent) than banks which covered 4.76 percent of the rural population. Based on the findings, the work concluded that both household and institution variables determined the value of savings mobilized.