EVALUATION OF UGA MICROFINANCE BANK AWALASI, UGA BRANCH
The related literature on micro-finance bank will be discussed under the following sub-headings.
* Concept and definition of Micro-finance bank
* Historical Development of Micro-finance bank
* Micro-finance bank in United state
* Micro-finance bank in Africa
* Micro-finance bank in Nigeria
* Micro-finance bank in Uga
2.2 CONCEPT AND DEFINITION OF MICRO FINANCE BANK
The term “Microfinance bank” 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 (Nwanyanwu, 2011).
According to CBN (2004), Microfinance is a development tool used to create access for the economically active poor to financial services at a sustainably affordable price.
2.3 HISTORICAL DEVELOPMENT OF MICROFINANCE BANK
The beginning of the Microfinance bank movement are most closely associated with the economist Muhammed Yunus, who in the early 1970’s was a professor in Bangladesh. In the midst of a country-wide famine, he began making small loans to poor families in neighboring villages in an effort to break their cycle of poverty. The experiment was a surprising success, with Yunus receiving timely repayment and observing significant changes in the quality of life for his loan recipients. Unable to self-finance an expansion of his project, he sought governmental assistance, and the Grameen bank was born. In order to focus on the very poor, the bank only lent to households owing less than half-acre of land. Repayment rates remained high and the bank began to spread its operations to other regions of the country. In less than a decade, the bank was operating independently from its governmental founders and was advertising consistent repayment rates of about 98% (Keven Davis / IILJ, 2008)
2.4 MICRO FINANCE BANK IN UNITED STATE
In the late 1980s, Microfinance institutions developed in the United state. They served low-income and marginalized minority communities. By 2007, there were 500 Microfinance organizations operating in the US with 200 lending capital (Wikipedia, 2011).
2.5 MICRO FINANCE BANK IN AFRICA
Turning now to another world of microfinance, our journey back in history takes us to Nigeria to a microfinance revolution, centuries ago. The earliest evidence of financial institutions in Africa dates back to the 16th century to esusu, a rotating savings and credit association (ROSCA) among the Yoruba. As a form of social capital, the esusu as a financial self-help group was transported during the slave trade to the “Caribbean Islands (Bascom 1952:69), where both the institution and the term still exist today now carried by a new wave of migrants to major American cities (Siebel, 2000).
2.6 MICROFINANCE BANK IN NIGERIA
The launching of microfinance policy, regulation and supervisory framework guideline by the central bank Nigeria 2005, according to Asuquo (2005:16) was the emergence of large number of private-sector initiated microfinance banks (MFBs) across the country, either through converting existing community banks, transforming the existing NGO-MPIs or promoting fresh microfinance operators. The basic concept underlying the emergence of microfinance banks is community oriented. Moruf (2013).
2.7 MICROFINANCE BANK IN UGA
Years back before 2005, Uga community Bank was operating as the sole financial institution which must shareholders were Uga famous indigene. The community bank came in existence because of the high demand by Orie Uga marketers who complain of being attack on there way to Ekwulobia bank. So, the demand for a bank was much so these famous indigene contributed and built a community bank to serve the purpose of saving and lending money. In 2005 government policy to encourage entrepreneur converted the bank into Uga microfinance bank (Ojiako, 2006).
2.8 SYNTHESIS OF LITERATURE
From the literature review, the following conclusions was drawn.
i A well centralized location will be provided for easy access to the bank building.
ii Provision of well ventilated space in the bank building will enhance the working ability of their staff.
iii Provision of standard design of micro-finance bank building will attract more customers to the bank.
2.9 GAP IN LITERATURE
From the numerous relevant reviewed relating to micro-finance bank building several gaps were identified which include:
1) None of the works showed how the building will be position for easy identification by the people using it.
2) None of the works showed the size of the building for smaller population.
3) None of the works showed the landscape of the building unused space.
