ABSTRACT

Topic: Evaluation of microfinance bank funding to the rural economy of Ogbe-Ahiara Ahiazu Mbaise This research work was designed to let the public know about the contribution of microfinance bank to economy of Ahiazu Mbaise L.G.A. For many years, effort was made to involve the rural people in modem banking practices. In Nigeria, the formal financial system provides services to about 35% of the economically active population while the remaining 65% are excluded from access to financial services. This 65% are often served by the informal financial sector, through non-government organization (NGO) microfinance institutions, money lenders, friends, relatives and credit unions. Microfinance is about providing financial service to the poor who are traditionally not served by the conventional financial institutions. Three features distinguish microfinance from other financial products. There are: the smallness of loans advanced and or saving collected the absence of assets based collateral, and simplicity of operations. The specific objective of the research work include: to identify the types of' enterprises funded by microfinance bank, to determine factors influencing loan disbursement to the enterprises, identify problems facing the various enterprises funded by microfinance bank, to make policy recommendation based on findings. From the findings we were able to identify 1 7 enterprises within the area that have benefited from MFB Oghe Ahiazu Mbaise interms of loan and advances granted to them The enterprises are better explained in chapter two of the work. Based on the findings, sonic recommendations were made that microfinance bank should be managed b experts — who are well versed in banking matters as this will allow for improved banking performance, government should play a significant role in protecting the MFl3 so that envisage beneficial effects would be felt by people of the community, the bank should adopt efficient promotional packages to elicit higher response from customer at local level. Result: By the use of multiple regression analysis, we Found out that the alternative hypothesis should be accepted in hypothesis one (I). And iii hypothesis (2) the null hypothesis should be rejected and have the alternative accepted