The Role of Rural Banks in Micro Financing in Ghana

The role played by rural banks in micro financing is very critical for the social and economic development of Ghana. study therefore evaluates roles Rural Banks micro-financing. Adopting a descriptive research design, sample size 700 customers 200 staffs from are conveniently selected this study. Ordinary least square estimator employed to establish effect activities on standard living, savings culture business culture. reveals that manufacturing business, agricultural service major financed Banks. In addition, bank provides funding such as funds farming, startup capital, acquisition raw materials expansion. results show positive significant effects micro-financing (manufacturing activities, agriculture personal trading activities) culture, It also emerged misapplication loans, insufficient high default rate affects administration loan at recommends actualize fleeting activity joint effort with accomplice establishments SMEs. Bank ought lessen quantity collateral security other qualification access microloans guarantee appropriate considerations applying credits. Keywords : banks, microfinancing, micro-credit, poverty DOI: 10.7176/RJFA/13-8-05 Publication date: April 30 th 2022