Micro Finance Banks: Operational Problems Facing Micro Finance Banks
This chapter gives an insight into various studies conducted by outstanding researchers, as well as explained terminologies with regards to the operational problems of Micro Finance banks in Delta state. The chapter also gives a resume of the history and present status of the problem delineated by a concise review of previous studies into closely related problems.
2.2 THE CONCEPT OF MICRO-FINANCE
The term “micro finance” refers to the activity of the provision of financial services to clients who are excluded from the traditional financial system on account of their lower economic status. These financial services will most commonly be in the form of loans and savings, through some micro finance institution who will offer other services such as insurance and payment services. According to CBN (2004), micro finance is a development tool used to create access for the economically active poor to financial services at a sustainably affordable price. [Read more…]