ABSTRACT

The Subject of this research bothered on an analysis of the observed roles of

commercial banks in the translorniation of the rural areas as agents of

transformation. lo this end, relevant research questions were asked amongst wlich

include: what initiatives have been put in place by the commercial banks in

performing its' role of transforming the rural areas. In line with this, the study

revealed that various initiatives have been put in place by the commercial banks in

attempting to transform the rural areas, notble among which include the rural

banking scheme. To further reveal the results the study empirically tested for

significance in the level of deposit mobilization from the rural dwellers and the

loans advanced to rural investors. Thus, the study revealed that the amount of loan

q advanced to the rural investors does not necessarily depend on the level of

increasing the amount of deposit of the rural dwellers. Hence, any increase in

deposits will lead to a less than Proportionate increase in loan to rural investors. In

view of this, the recommendations put forward was that the central bank of Nigeria

should set in order strong capital base for the rural branches and also prudential

guidelines as regards funding rural investors nd also a strong sup.rvisory agency

that would follow up action in order to ensure total compliance.