The study was designed to estimate growth implications of the intermediation activities of microfinance banks in Nigeria. The study covered the period 1992 to 2016. Model estimation was based on the technique of autoregressive distributed lag (ARDL) using data from the Central Bank of Nigeria statistical bulletin. Traditional intermediation functions of microfinance banks (deposit mobilization and credit creation) were adopted as explanatory variables while inflation and asset base were introduced as controlled variables. The result showed that while deposit mobilization significantly enhanced growth, microfinance banks’ loans and advances impeded the growth process.
TECHNOLOGICAL ADVANCES IN MICROFINANCE BANKS AND ECONOMIC GROWTH IN NIGERIAIAEME Publication
The study was designed to estimate growth implications of the intermediation activities of microfinance banks in Nigeria. The study covered the period 1992 to 2016. Model estimation was based on the technique of autoregressive distributed lag (ARDL) using data from the Central Bank of Nigeria statistical bulletin. Traditional intermediation functions of microfinance banks (deposit mobilization and credit creation) were adopted as explanatory variables while inflation and asset base were introduced as controlled variables. The result showed that while deposit mobilization significantly enhanced growth, microfinance banks’ loans and advances impeded the growth process.
Microfinance Banking and Development of Small Business in Emerging Economy: N...iosrjce
The research study examines the Microfinance Banking and Development of Small Business in
emerging economy: Nigerian Approach. The Microfinance Banks (MFBs) serve as an engine through which
economic industrial development subsists in Nigeria. MFBs have been involved in the promotion, growth and
development of the informal sector and remains heralded strategy for industrial development in emerging
economies including Nigeria. The primary source of data was adopted via questionnaire and oral interview. A
simple regression was used to address the responses of the respondents gathered though the questionnaire in
order to derive logical conclusion for the study. It was however established that MFBs have the capacity to
boost economic development in Nigeria through the support of government agency (CBN) to keep them tracked
and to be focused on the objectives for which they were established. Also, the reviewing and refining of the
National Microfinance development Strategy Policy for MFBs in Nigeria is remarkable and commendable. The
paper further recommends that MFBs’ operations should be continuously be monitored by the regulatory
agency (CBN) in order to adequately address the gap in terms of credit, savings and other financial services
required by the micro entrepreneurs. The latent capacity of the poor for entrepreneurship would be significantly
enhanced through the provision of microfinance services to enable them engage in economic activities and be
more self-reliant, increase employment opportunities, enhanced household income,create wealth etc.
Analysis of the effects of micro finance banks on poverty reanglo99
This document analyzes the effects of microfinance banks on poverty reduction and economic growth in Nigeria. It discusses how microfinance banks aim to increase access to credit for small businesses and low-income households. This is intended to promote entrepreneurship, self-reliance, employment, and household income among the poor. The document also outlines the objectives of microfinance banks in Nigeria, which include serving the large unserved market, generating employment, reducing poverty, and increasing savings opportunities. It provides context on the history and concept of microfinance in Nigeria.
C.PARAMASIVAN ,PERIYAR EVR COLLEGE , TIRUCHIRAPPALLI Financial inclusion thro...chelliah paramasivan
This document discusses financial inclusion in India through commercial banks. It notes that while the banking sector has expanded in recent decades, many households, especially in rural areas, remain outside the formal banking system. The Reserve Bank of India has taken several initiatives to promote financial inclusion, such as relaxing service area norms for banks and launching pilot projects in various districts aimed at providing 100% of residents with bank accounts and services. However, challenges to financial inclusion remain, as many banks have limited branch coverage, inconvenient hours of operation, and cultural barriers that exclude low-income groups. The document argues that expanding access to financial services can help drive economic growth.
Microfinance and the Challenge of Financial Inclusion for Sme’s Development i...IOSRJBM
This paper examined microfinance and the challenge of financial inclusion for SMEs development in Nigeria. The study adopted two separate econometrics models for capturing and testing for significance in the stated objectives between 2005 and 2015. The first model determined whether financial inclusion improve the financial well-being of low-income savers in the study period. The second investigated the impact that micro finance has on the performance of small and medium scale enterprises. Each of the models was subjected to the Ordinary Least Square regression to determine the appropriateness of models estimated. Findings from the empirical results in model one (1) and two (2) indicated relationship between financial inclusion in Nigeria, microfinance, and small business enterprises over 10 years period of study. The study found out that there is a significant relationship between financial inclusion and financial well – being of the low income earners. Empirical finding that examines the relationship between microfinance and small business in Nigeria indicates that there is a negative significant relationship between loan to small enterprises and loan to rural areas in Nigeria in the period under study. The study suggests therefore that financial inclusion will have a positive significant impact on the development of small business if the plan to include everyone works in Nigeria.
Microfinance and strategy of financial inclusion in indiaAlexander Decker
This document discusses microfinance and financial inclusion in India. It notes that while India has made progress in expanding access to banking, many rural and low-income populations still lack access to formal financial services. Microfinance institutions like self-help groups have played an important role in promoting financial inclusion. The document examines different approaches to financial inclusion in India, the role of banks and microfinance, and challenges remaining around expanding access in a sustainable way.
Research Inventy : International Journal of Engineering and Scienceresearchinventy
Research Inventy : International Journal of Engineering and Science is published by the group of young academic and industrial researchers with 12 Issues per year. It is an online as well as print version open access journal that provides rapid publication (monthly) of articles in all areas of the subject such as: civil, mechanical, chemical, electronic and computer engineering as well as production and information technology. The Journal welcomes the submission of manuscripts that meet the general criteria of significance and scientific excellence. Papers will be published by rapid process within 20 days after acceptance and peer review process takes only 7 days. All articles published in Research Inventy will be peer-reviewed.
This document summarizes an article from the International Journal of Management. The article discusses mainstreaming the marginalized through microfinance and provides a literature review on the topic. It outlines the objectives of understanding how microfinance contributes to rural economic development. It also discusses methodologies used and reviews several other studies that have found microfinance initiatives improve economic conditions, empower women, and provide access to financial services for rural communities previously excluded from formal sources of credit.
TECHNOLOGICAL ADVANCES IN MICROFINANCE BANKS AND ECONOMIC GROWTH IN NIGERIAIAEME Publication
The study was designed to estimate growth implications of the intermediation activities of microfinance banks in Nigeria. The study covered the period 1992 to 2016. Model estimation was based on the technique of autoregressive distributed lag (ARDL) using data from the Central Bank of Nigeria statistical bulletin. Traditional intermediation functions of microfinance banks (deposit mobilization and credit creation) were adopted as explanatory variables while inflation and asset base were introduced as controlled variables. The result showed that while deposit mobilization significantly enhanced growth, microfinance banks’ loans and advances impeded the growth process.
Microfinance Banking and Development of Small Business in Emerging Economy: N...iosrjce
The research study examines the Microfinance Banking and Development of Small Business in
emerging economy: Nigerian Approach. The Microfinance Banks (MFBs) serve as an engine through which
economic industrial development subsists in Nigeria. MFBs have been involved in the promotion, growth and
development of the informal sector and remains heralded strategy for industrial development in emerging
economies including Nigeria. The primary source of data was adopted via questionnaire and oral interview. A
simple regression was used to address the responses of the respondents gathered though the questionnaire in
order to derive logical conclusion for the study. It was however established that MFBs have the capacity to
boost economic development in Nigeria through the support of government agency (CBN) to keep them tracked
and to be focused on the objectives for which they were established. Also, the reviewing and refining of the
National Microfinance development Strategy Policy for MFBs in Nigeria is remarkable and commendable. The
paper further recommends that MFBs’ operations should be continuously be monitored by the regulatory
agency (CBN) in order to adequately address the gap in terms of credit, savings and other financial services
required by the micro entrepreneurs. The latent capacity of the poor for entrepreneurship would be significantly
enhanced through the provision of microfinance services to enable them engage in economic activities and be
more self-reliant, increase employment opportunities, enhanced household income,create wealth etc.
Analysis of the effects of micro finance banks on poverty reanglo99
This document analyzes the effects of microfinance banks on poverty reduction and economic growth in Nigeria. It discusses how microfinance banks aim to increase access to credit for small businesses and low-income households. This is intended to promote entrepreneurship, self-reliance, employment, and household income among the poor. The document also outlines the objectives of microfinance banks in Nigeria, which include serving the large unserved market, generating employment, reducing poverty, and increasing savings opportunities. It provides context on the history and concept of microfinance in Nigeria.
C.PARAMASIVAN ,PERIYAR EVR COLLEGE , TIRUCHIRAPPALLI Financial inclusion thro...chelliah paramasivan
This document discusses financial inclusion in India through commercial banks. It notes that while the banking sector has expanded in recent decades, many households, especially in rural areas, remain outside the formal banking system. The Reserve Bank of India has taken several initiatives to promote financial inclusion, such as relaxing service area norms for banks and launching pilot projects in various districts aimed at providing 100% of residents with bank accounts and services. However, challenges to financial inclusion remain, as many banks have limited branch coverage, inconvenient hours of operation, and cultural barriers that exclude low-income groups. The document argues that expanding access to financial services can help drive economic growth.
Microfinance and the Challenge of Financial Inclusion for Sme’s Development i...IOSRJBM
This paper examined microfinance and the challenge of financial inclusion for SMEs development in Nigeria. The study adopted two separate econometrics models for capturing and testing for significance in the stated objectives between 2005 and 2015. The first model determined whether financial inclusion improve the financial well-being of low-income savers in the study period. The second investigated the impact that micro finance has on the performance of small and medium scale enterprises. Each of the models was subjected to the Ordinary Least Square regression to determine the appropriateness of models estimated. Findings from the empirical results in model one (1) and two (2) indicated relationship between financial inclusion in Nigeria, microfinance, and small business enterprises over 10 years period of study. The study found out that there is a significant relationship between financial inclusion and financial well – being of the low income earners. Empirical finding that examines the relationship between microfinance and small business in Nigeria indicates that there is a negative significant relationship between loan to small enterprises and loan to rural areas in Nigeria in the period under study. The study suggests therefore that financial inclusion will have a positive significant impact on the development of small business if the plan to include everyone works in Nigeria.
Microfinance and strategy of financial inclusion in indiaAlexander Decker
This document discusses microfinance and financial inclusion in India. It notes that while India has made progress in expanding access to banking, many rural and low-income populations still lack access to formal financial services. Microfinance institutions like self-help groups have played an important role in promoting financial inclusion. The document examines different approaches to financial inclusion in India, the role of banks and microfinance, and challenges remaining around expanding access in a sustainable way.
Research Inventy : International Journal of Engineering and Scienceresearchinventy
Research Inventy : International Journal of Engineering and Science is published by the group of young academic and industrial researchers with 12 Issues per year. It is an online as well as print version open access journal that provides rapid publication (monthly) of articles in all areas of the subject such as: civil, mechanical, chemical, electronic and computer engineering as well as production and information technology. The Journal welcomes the submission of manuscripts that meet the general criteria of significance and scientific excellence. Papers will be published by rapid process within 20 days after acceptance and peer review process takes only 7 days. All articles published in Research Inventy will be peer-reviewed.
This document summarizes an article from the International Journal of Management. The article discusses mainstreaming the marginalized through microfinance and provides a literature review on the topic. It outlines the objectives of understanding how microfinance contributes to rural economic development. It also discusses methodologies used and reviews several other studies that have found microfinance initiatives improve economic conditions, empower women, and provide access to financial services for rural communities previously excluded from formal sources of credit.
FINANCIAL INCLUSION IN INDIA: A ROAD MAP TOWARDS FUTURE GROWTHIAEME Publication
This document discusses financial inclusion in India and proposes a roadmap for future growth. It defines financial inclusion and exclusion, and outlines the importance of financial inclusion for overall development. Several approaches to achieving financial inclusion in India are analyzed, including product-based approaches like no-frills accounts, credit cards, and savings accounts with overdraft facilities. Bank-led approaches like self-help groups and using business correspondents are also discussed. The regulatory approach of simplified KYC norms to expand rural banking is mentioned. Overall, the document evaluates India's progress on financial inclusion and suggests that continued initiatives and innovative technologies are needed to strengthen financial deepening and credit delivery, especially in rural areas.
1. The document discusses the role of banks in promoting financial inclusion in India. It examines how increased access to banking services like savings accounts, credit facilities, and insurance can help drive economic growth and reduce inequality.
2. The study analyzes secondary data on factors like the number of bank branches, ATM growth, and credit-deposit ratios in India from the past seven years. It finds that increased bank branches and higher credit-deposit ratios have had a positive significant impact on India's GDP, while ATM growth did not.
3. Financial inclusion, defined as access to affordable financial services for all including disadvantaged groups, is an important priority for the Indian government and regulators to promote inclusive economic development.
Microfinance banks and entrepreneurship development in nigeriaAlexander Decker
This document summarizes a study that examined the impact of microfinance banks on entrepreneurship development in Nigeria, using Ogun State as a case study. The study found a positive relationship between microfinance and entrepreneurship, showing that microfinance contributes to entrepreneurial activities and sustainable development. It was found that microfinance institutions play an important role in determining entrepreneurial productivity and economic growth in Nigeria. The study recommends that monetary authorities and microfinance institutions improve access to financing for entrepreneurial activities in order to promote further economic growth, employment, and poverty reduction.
FINANCIAL INCLUSION A RETROSPECTIVE APPRAISALDr Lendy Spires
This chapter provides an overview of India's financial inclusion policies and programs implemented by the government and Reserve Bank of India over time. It analyzes the current state of financial inclusion in India from both demand and supply sides. While efforts have been made to enhance access through rural bank branches, self-help groups, and priority sector lending, a large unmet demand remains, especially among poorer populations. The chapter compares India's financial inclusion metrics to other countries and outlines the existing financial inclusion architecture and its limitations in fully addressing rural credit needs.
CREATING AWARENESS FOR THE CASHLESS ECONOMY OF INDIAMalhari Survase
The dream of the cashless economy becomes unreal due to the lack of awareness of cashless economy and demerits of cash transitions. This paper aims to focus on the significance of awareness among the society for the cashless transitions and reduce the cash transitions. For the same paper, the data and information is collected from newspapers, articles, magazines,
internet websites, and expert interviews. The results of demonetization leads to the cashless economy but its effectiveness decreased due to the lack of awareness among the society and created the need of awareness the betterment of Indian economy.
Impact of shg bank linkage programme on women shgs empowerment with reference...prjpublications
This document summarizes a study on the impact of India's Self Help Group Bank Linkage Program (SBLP) on women's self-help groups (SHGs) and empowerment. Some key findings:
- Between 2007-2012, the number of SHGs with bank savings increased 91.33% to over 79 million SHGs, while loans disbursed grew 151.65% to over $16.5 billion.
- Women-led SHGs dominated the program, comprising over 79% of all SHGs. Savings, loans disbursed, and loans outstanding for women SHGs all increased substantially between 2007-2012.
- The study found SBLP has been largely successful in
Smart City Mission’s Financial Implications on Municipal Budgets Ravikant Joshi
This PPT delivered in Workshop on Interrogating Governance and Financial Implications of ‘Smart Cities’ organised by Environmental Support Group Trust (ESG) & Centre for Financial Accountability (CFA) outlines financial implications of SCM on Municipal Budget and Finances of Smart Cities
- India's urban population is growing rapidly and is projected to increase significantly by 2030, with many large cities.
- The Indian government has implemented various initiatives like Smart Cities Mission, AMRUT, and Housing for All to improve urban infrastructure and quality of life.
- Gujarat has a high level of urbanization compared to India overall and its cities are growing. The state government has undertaken initiatives like Smart Cities, affordable housing programs, and cleanliness drives to develop sustainable urban areas.
- Key projects in Gujarat include the Smart Cities of Ahmedabad, Surat, etc., the GIFT City financial hub, and the proposed Dholera SIR greenfield city.
Contemporary Global Challenges and Technology Solutions. Abraham Paul
How to tackle Contemporary Global Challenges: 1.Poverty due lack Jobs, Agricultural/Farming Income for minimum livelihood. 2. Corruption and Black Money due to a few amassing and hoarding wealth that widen gap between Rich and the Poor. 3. Heavy burden of Duties and Taxes on Common People. 4. Proliferation of Terrorism of sorts across the World. 5. Degradation of Cyber Security and Privacy, with an amazingly simple Technology Solution. Universally Governments Operate Money As Commodity. #UGOMAC
Contemporary Global Challenges and Technology Solutions.Abraham Paul
(1) The document discusses contemporary global challenges like poverty, corruption, taxation, terrorism, and cybersecurity issues.
(2) It proposes the concept of "Government Operate Money as Commodity" (GOMAC) where the government would create and manage both physical and virtual money through a national server.
(3) By levying a small transaction charge (0-2%) on all money transfers using this system, the government could generate substantial annual revenue estimated between Rs. 250-400 trillion without additional taxes. This would far exceed current budgets and help address key challenges.
1) Bank Indonesia plays an important role in promoting financial inclusion in Indonesia in order to support its monetary, payment system, and macroprudential functions. Financial inclusion helps reduce liquidity and credit risks for banks.
2) Bank Indonesia's strategies for promoting financial inclusion include educating the public to use electronic money accounts rather than cash and reducing consumptive tendencies. Digital Financial Services (DFS) expand access to financial services through non-branch channels like mobile phones and agents.
3) Electronic money in Indonesia comes in registered and unregistered forms, with registered e-money allowing maximum balances of Rp 5 million and enabling transfers and cash withdrawals. DFS and electronic money can be used through Islamic boarding schools
Sustainable Development sector in Vibrant Gujarat SummitVibrant Gujarat
The Government of Gujarat committed to make sure that the dividends of the rapid economic growth reaches the weakest sections of the society. This is reflected in the policies and programs directed towards sustainable human development
C.PARAMASIVAN ,PERIYAR EVR COLLEGE , TIRUCHIRAPPALLI Public sector banks perf...chelliah paramasivan
1. The document discusses the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme launched by the Indian government to promote financial inclusion.
2. It analyzes the contribution and performance of public sector banks in implementing the PMJDY scheme. Public sector banks opened over 53-54% of PMJDY accounts in rural areas between September 2014 to March 2015.
3. The number of PMJDY accounts opened by public sector banks increased over time, from 7.7% of total accounts (over 43 million) in September 2014 to over 20% (over 115 million) by March 2015.
The document evaluates financial inclusion in India by analyzing trends such as the spatial distribution of banking services, number of deposit and credit accounts, population coverage by region, agricultural credit coverage, and coverage of farmer households by social group and land holding. It finds that while the number of bank branches has increased across regions, the rise in credit accounts per population has not been significant. Coverage of farmer households and small/marginal farmers also remains low. The study recommends increasing priority on financial inclusion policies to better cover the poor through strategic credit provision, cooperative use, procedural changes, and government/technology initiatives.
FINANCIAL INCLUSION AND WOMEN EMPOWERMENT IN UGANDA A CASE OF LANGO SUB REGIO...ectijjournal
Women empowerment has taken a center stage in the present development agenda. The study examines the role of financial inclusion in supporting women empowerment in Lango sub region, Northern Uganda. Using both purposive and simple random sampling a Sample of 126 respondents was selected with a response rate of 100% realized. The study found out that financial support appeared to be sparse, The regulations, supervision and monitoring of some of these firms was lacking, causing many women to lose their savings with such firms. The study therefore recommended that Government should establish buffers to serve as collateral security for women who intend to secure financial credit. Financial service providers should lower down the costs of operating accounts for the financial inclusiveness of women, particularly women from rural areas. Government should tighten monitoring, regulating and supervisory policies of financial service providers to restore public trust in financial institutions in Uganda. Financial services providers, government and other development partners should offer both formal and informal business education training.
Contribution of Financial Inclusion on the Economic Development of Nigeria 19...ijtsrd
Financial inclusion strategy was set up so that all people have access to banking and insurance services as well as financial literacy and capabilities that will help improve standard of living in the country. Therefore the study examined the contribution of financial inclusion on the economic development of Nigeria. Secondary data were collected from Central Bank of Nigeria statistical bulletin and UNDP Human Development Reports spanning from 1999 to 2020.The research work selected Nigeria as its sample and used the Error Correction Mechanism ECM to test the contribution of the explanatory variables Deposits from rural branches of commercial banks, Loans to rural branches of commercial banks, Number of Micro Finance Banks, Commercial Bank Loans to Small Scale Enterprise on the dependent variable Human Development Index .The findings from the study revealed that financial inclusion has not contributed significantly on the economic development of Nigeria for the period under review. The granger causality test also shows a unidirectional causality between financial inclusion and economic development of Nigeria. The results suggest that financial inclusion can help improve the standard of living of the country and reduce high unemployment rate in the country, if implemented effectively. The study therefore recommends that Central bank of Nigeria should approve the establishment of more micro finance banks in order to meet the financial needs of low income neighborhoods and rural dwellers. The Central bank of Nigeria should intensify efforts aimed at credit facilities to small and medium scale enterprises SMEs to boost financial inclusion in the economy by mandating banks to dedicate 10 of their net profit after tax to SMEs loans. Commercial banks should diversify their portfolios as this will help reduce various investment risks they face while extending financial service to the poor and rural dwellers in the country. There is need to improve the financial infrastructure in the country which will help banks in deposit mobilization especially the unbanked and rural dwellers in the country. Ogbonnaya-Udo, Nneka | Chukwu, Kenechukwu Origin "Contribution of Financial Inclusion on the Economic Development of Nigeria (1999 – 2020)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-1 , December 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47748.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/47748/contribution-of-financial-inclusion-on-the-economic-development-of-nigeria-1999-–-2020/ogbonnayaudo-nneka
This document discusses microfinance banks and their role in promoting financial inclusion and empowerment in rural communities. It argues that microfinance banks can play a unique role in intermediating loans for rural businesses and farmers by gathering and analyzing local information at a lower cost than larger banks, thanks to technological advances. However, microfinance banks in Nigeria are not fully fulfilling this role and poverty alleviation potential. They are not sufficiently involved in local development projects, not targeting poor rural borrowers, and not operating as development banks focused on poverty reduction. The document recommends that microfinance banks become more actively involved in their communities and ensure loans are used for intended projects to better promote rural development.
Multidisciplinary Journal Supported by TETFund. The journals would publish papers covering a wide range of subjects in journal science, management science, educational, agricultural, architectural, accounting and finance, business administration, entrepreneurship, business education, all journals
The document discusses a study that evaluated the impact of microfinance banks on household income and expenditure among rural communities in Oyo State, Nigeria. The study found that the emergence of microfinance banks in Oyo State impacts household income and expenditure levels because loan size is negatively correlated with poverty levels. Prior research discussed in the document showed mixed results on the impacts of microfinance on poverty reduction, household welfare, and women's empowerment. The objectives, hypotheses, and methodology of the study are also outlined.
Financial Inclusion and Rural DevelopmentAntonio Sendi
This projects underlines the impacts of development strategies on development agenda, and how it may overcomes the existing gaps in social inequality and poverty.
A brief introduction and contextualization of rural profile displays what are the challenges to promote linkages in local and national level, with a focus on financial inclusion.
A case of study from Angoche district match up the criteria, bringing into loop the main drivers to accelerate social inclusion throughout digital technologies.
Financial Inclusion: Are Nigerian Banks Getting it Right?CSR-in-Action
The term ‘financial inclusion’ has gained momentum in the Nigerian banking industry since the inception of the Nigerian Sustainable Banking Principles (NSBP) by the Central Bank of Nigeria (CBN) in the year 2012. But are Nigerian banks really in the true path of financial inclusion or inclusive banking?
The document discusses financial inclusion in India. It defines financial inclusion and notes that it aims to provide access to appropriate financial services and products to vulnerable groups at affordable costs. It identifies groups that are commonly excluded from financial services like farmers and slum dwellers. It discusses various initiatives taken by the Reserve Bank of India and private companies to promote financial inclusion through expanding branch networks, increasing ATM availability, and issuing loans and credit cards to farmers and small businesses. Overall progress has been made in increasing access, but challenges remain in promoting awareness and usability of these services.
FINANCIAL INCLUSION IN INDIA: A ROAD MAP TOWARDS FUTURE GROWTHIAEME Publication
This document discusses financial inclusion in India and proposes a roadmap for future growth. It defines financial inclusion and exclusion, and outlines the importance of financial inclusion for overall development. Several approaches to achieving financial inclusion in India are analyzed, including product-based approaches like no-frills accounts, credit cards, and savings accounts with overdraft facilities. Bank-led approaches like self-help groups and using business correspondents are also discussed. The regulatory approach of simplified KYC norms to expand rural banking is mentioned. Overall, the document evaluates India's progress on financial inclusion and suggests that continued initiatives and innovative technologies are needed to strengthen financial deepening and credit delivery, especially in rural areas.
1. The document discusses the role of banks in promoting financial inclusion in India. It examines how increased access to banking services like savings accounts, credit facilities, and insurance can help drive economic growth and reduce inequality.
2. The study analyzes secondary data on factors like the number of bank branches, ATM growth, and credit-deposit ratios in India from the past seven years. It finds that increased bank branches and higher credit-deposit ratios have had a positive significant impact on India's GDP, while ATM growth did not.
3. Financial inclusion, defined as access to affordable financial services for all including disadvantaged groups, is an important priority for the Indian government and regulators to promote inclusive economic development.
Microfinance banks and entrepreneurship development in nigeriaAlexander Decker
This document summarizes a study that examined the impact of microfinance banks on entrepreneurship development in Nigeria, using Ogun State as a case study. The study found a positive relationship between microfinance and entrepreneurship, showing that microfinance contributes to entrepreneurial activities and sustainable development. It was found that microfinance institutions play an important role in determining entrepreneurial productivity and economic growth in Nigeria. The study recommends that monetary authorities and microfinance institutions improve access to financing for entrepreneurial activities in order to promote further economic growth, employment, and poverty reduction.
FINANCIAL INCLUSION A RETROSPECTIVE APPRAISALDr Lendy Spires
This chapter provides an overview of India's financial inclusion policies and programs implemented by the government and Reserve Bank of India over time. It analyzes the current state of financial inclusion in India from both demand and supply sides. While efforts have been made to enhance access through rural bank branches, self-help groups, and priority sector lending, a large unmet demand remains, especially among poorer populations. The chapter compares India's financial inclusion metrics to other countries and outlines the existing financial inclusion architecture and its limitations in fully addressing rural credit needs.
CREATING AWARENESS FOR THE CASHLESS ECONOMY OF INDIAMalhari Survase
The dream of the cashless economy becomes unreal due to the lack of awareness of cashless economy and demerits of cash transitions. This paper aims to focus on the significance of awareness among the society for the cashless transitions and reduce the cash transitions. For the same paper, the data and information is collected from newspapers, articles, magazines,
internet websites, and expert interviews. The results of demonetization leads to the cashless economy but its effectiveness decreased due to the lack of awareness among the society and created the need of awareness the betterment of Indian economy.
Impact of shg bank linkage programme on women shgs empowerment with reference...prjpublications
This document summarizes a study on the impact of India's Self Help Group Bank Linkage Program (SBLP) on women's self-help groups (SHGs) and empowerment. Some key findings:
- Between 2007-2012, the number of SHGs with bank savings increased 91.33% to over 79 million SHGs, while loans disbursed grew 151.65% to over $16.5 billion.
- Women-led SHGs dominated the program, comprising over 79% of all SHGs. Savings, loans disbursed, and loans outstanding for women SHGs all increased substantially between 2007-2012.
- The study found SBLP has been largely successful in
Smart City Mission’s Financial Implications on Municipal Budgets Ravikant Joshi
This PPT delivered in Workshop on Interrogating Governance and Financial Implications of ‘Smart Cities’ organised by Environmental Support Group Trust (ESG) & Centre for Financial Accountability (CFA) outlines financial implications of SCM on Municipal Budget and Finances of Smart Cities
- India's urban population is growing rapidly and is projected to increase significantly by 2030, with many large cities.
- The Indian government has implemented various initiatives like Smart Cities Mission, AMRUT, and Housing for All to improve urban infrastructure and quality of life.
- Gujarat has a high level of urbanization compared to India overall and its cities are growing. The state government has undertaken initiatives like Smart Cities, affordable housing programs, and cleanliness drives to develop sustainable urban areas.
- Key projects in Gujarat include the Smart Cities of Ahmedabad, Surat, etc., the GIFT City financial hub, and the proposed Dholera SIR greenfield city.
Contemporary Global Challenges and Technology Solutions. Abraham Paul
How to tackle Contemporary Global Challenges: 1.Poverty due lack Jobs, Agricultural/Farming Income for minimum livelihood. 2. Corruption and Black Money due to a few amassing and hoarding wealth that widen gap between Rich and the Poor. 3. Heavy burden of Duties and Taxes on Common People. 4. Proliferation of Terrorism of sorts across the World. 5. Degradation of Cyber Security and Privacy, with an amazingly simple Technology Solution. Universally Governments Operate Money As Commodity. #UGOMAC
Contemporary Global Challenges and Technology Solutions.Abraham Paul
(1) The document discusses contemporary global challenges like poverty, corruption, taxation, terrorism, and cybersecurity issues.
(2) It proposes the concept of "Government Operate Money as Commodity" (GOMAC) where the government would create and manage both physical and virtual money through a national server.
(3) By levying a small transaction charge (0-2%) on all money transfers using this system, the government could generate substantial annual revenue estimated between Rs. 250-400 trillion without additional taxes. This would far exceed current budgets and help address key challenges.
1) Bank Indonesia plays an important role in promoting financial inclusion in Indonesia in order to support its monetary, payment system, and macroprudential functions. Financial inclusion helps reduce liquidity and credit risks for banks.
2) Bank Indonesia's strategies for promoting financial inclusion include educating the public to use electronic money accounts rather than cash and reducing consumptive tendencies. Digital Financial Services (DFS) expand access to financial services through non-branch channels like mobile phones and agents.
3) Electronic money in Indonesia comes in registered and unregistered forms, with registered e-money allowing maximum balances of Rp 5 million and enabling transfers and cash withdrawals. DFS and electronic money can be used through Islamic boarding schools
Sustainable Development sector in Vibrant Gujarat SummitVibrant Gujarat
The Government of Gujarat committed to make sure that the dividends of the rapid economic growth reaches the weakest sections of the society. This is reflected in the policies and programs directed towards sustainable human development
C.PARAMASIVAN ,PERIYAR EVR COLLEGE , TIRUCHIRAPPALLI Public sector banks perf...chelliah paramasivan
1. The document discusses the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme launched by the Indian government to promote financial inclusion.
2. It analyzes the contribution and performance of public sector banks in implementing the PMJDY scheme. Public sector banks opened over 53-54% of PMJDY accounts in rural areas between September 2014 to March 2015.
3. The number of PMJDY accounts opened by public sector banks increased over time, from 7.7% of total accounts (over 43 million) in September 2014 to over 20% (over 115 million) by March 2015.
The document evaluates financial inclusion in India by analyzing trends such as the spatial distribution of banking services, number of deposit and credit accounts, population coverage by region, agricultural credit coverage, and coverage of farmer households by social group and land holding. It finds that while the number of bank branches has increased across regions, the rise in credit accounts per population has not been significant. Coverage of farmer households and small/marginal farmers also remains low. The study recommends increasing priority on financial inclusion policies to better cover the poor through strategic credit provision, cooperative use, procedural changes, and government/technology initiatives.
FINANCIAL INCLUSION AND WOMEN EMPOWERMENT IN UGANDA A CASE OF LANGO SUB REGIO...ectijjournal
Women empowerment has taken a center stage in the present development agenda. The study examines the role of financial inclusion in supporting women empowerment in Lango sub region, Northern Uganda. Using both purposive and simple random sampling a Sample of 126 respondents was selected with a response rate of 100% realized. The study found out that financial support appeared to be sparse, The regulations, supervision and monitoring of some of these firms was lacking, causing many women to lose their savings with such firms. The study therefore recommended that Government should establish buffers to serve as collateral security for women who intend to secure financial credit. Financial service providers should lower down the costs of operating accounts for the financial inclusiveness of women, particularly women from rural areas. Government should tighten monitoring, regulating and supervisory policies of financial service providers to restore public trust in financial institutions in Uganda. Financial services providers, government and other development partners should offer both formal and informal business education training.
Contribution of Financial Inclusion on the Economic Development of Nigeria 19...ijtsrd
Financial inclusion strategy was set up so that all people have access to banking and insurance services as well as financial literacy and capabilities that will help improve standard of living in the country. Therefore the study examined the contribution of financial inclusion on the economic development of Nigeria. Secondary data were collected from Central Bank of Nigeria statistical bulletin and UNDP Human Development Reports spanning from 1999 to 2020.The research work selected Nigeria as its sample and used the Error Correction Mechanism ECM to test the contribution of the explanatory variables Deposits from rural branches of commercial banks, Loans to rural branches of commercial banks, Number of Micro Finance Banks, Commercial Bank Loans to Small Scale Enterprise on the dependent variable Human Development Index .The findings from the study revealed that financial inclusion has not contributed significantly on the economic development of Nigeria for the period under review. The granger causality test also shows a unidirectional causality between financial inclusion and economic development of Nigeria. The results suggest that financial inclusion can help improve the standard of living of the country and reduce high unemployment rate in the country, if implemented effectively. The study therefore recommends that Central bank of Nigeria should approve the establishment of more micro finance banks in order to meet the financial needs of low income neighborhoods and rural dwellers. The Central bank of Nigeria should intensify efforts aimed at credit facilities to small and medium scale enterprises SMEs to boost financial inclusion in the economy by mandating banks to dedicate 10 of their net profit after tax to SMEs loans. Commercial banks should diversify their portfolios as this will help reduce various investment risks they face while extending financial service to the poor and rural dwellers in the country. There is need to improve the financial infrastructure in the country which will help banks in deposit mobilization especially the unbanked and rural dwellers in the country. Ogbonnaya-Udo, Nneka | Chukwu, Kenechukwu Origin "Contribution of Financial Inclusion on the Economic Development of Nigeria (1999 – 2020)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-1 , December 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47748.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/47748/contribution-of-financial-inclusion-on-the-economic-development-of-nigeria-1999-–-2020/ogbonnayaudo-nneka
This document discusses microfinance banks and their role in promoting financial inclusion and empowerment in rural communities. It argues that microfinance banks can play a unique role in intermediating loans for rural businesses and farmers by gathering and analyzing local information at a lower cost than larger banks, thanks to technological advances. However, microfinance banks in Nigeria are not fully fulfilling this role and poverty alleviation potential. They are not sufficiently involved in local development projects, not targeting poor rural borrowers, and not operating as development banks focused on poverty reduction. The document recommends that microfinance banks become more actively involved in their communities and ensure loans are used for intended projects to better promote rural development.
Multidisciplinary Journal Supported by TETFund. The journals would publish papers covering a wide range of subjects in journal science, management science, educational, agricultural, architectural, accounting and finance, business administration, entrepreneurship, business education, all journals
The document discusses a study that evaluated the impact of microfinance banks on household income and expenditure among rural communities in Oyo State, Nigeria. The study found that the emergence of microfinance banks in Oyo State impacts household income and expenditure levels because loan size is negatively correlated with poverty levels. Prior research discussed in the document showed mixed results on the impacts of microfinance on poverty reduction, household welfare, and women's empowerment. The objectives, hypotheses, and methodology of the study are also outlined.
Financial Inclusion and Rural DevelopmentAntonio Sendi
This projects underlines the impacts of development strategies on development agenda, and how it may overcomes the existing gaps in social inequality and poverty.
A brief introduction and contextualization of rural profile displays what are the challenges to promote linkages in local and national level, with a focus on financial inclusion.
A case of study from Angoche district match up the criteria, bringing into loop the main drivers to accelerate social inclusion throughout digital technologies.
Financial Inclusion: Are Nigerian Banks Getting it Right?CSR-in-Action
The term ‘financial inclusion’ has gained momentum in the Nigerian banking industry since the inception of the Nigerian Sustainable Banking Principles (NSBP) by the Central Bank of Nigeria (CBN) in the year 2012. But are Nigerian banks really in the true path of financial inclusion or inclusive banking?
The document discusses financial inclusion in India. It defines financial inclusion and notes that it aims to provide access to appropriate financial services and products to vulnerable groups at affordable costs. It identifies groups that are commonly excluded from financial services like farmers and slum dwellers. It discusses various initiatives taken by the Reserve Bank of India and private companies to promote financial inclusion through expanding branch networks, increasing ATM availability, and issuing loans and credit cards to farmers and small businesses. Overall progress has been made in increasing access, but challenges remain in promoting awareness and usability of these services.
An Assessment of the role of Financial literacy on Performance of Small and M...World-Academic Journal
This document summarizes a study that assessed the effects of a financial literacy education program on the performance of small and micro enterprises in Njoro District, Kenya. The program was implemented by Equity Group Foundation since 2011. The study found that the program emphasized important skills like budgeting, financial analysis, credit management and bookkeeping. There was a significant improvement in business performance, as measured by increased revenue, for enterprises whose managers participated in the financial literacy training. The training also helped participants better manage loans and minimize interest expenses, which enhanced performance. Budgeting skills played a key role in growing sales, profits and ensuring smooth business operations. Overall, the study concluded that the financial literacy program had a positive impact on business performance.
This document summarizes a study that assessed the effects of a financial literacy education program on the performance of small and micro enterprises in Njoro District, Kenya. The program was implemented by Equity Group Foundation since 2011. The study found that the program emphasized important skills like budgeting, financial analysis, credit management and bookkeeping. There was a significant improvement in business performance, as measured by increased revenue, for enterprises whose managers participated in the program. Credit management and budgeting skills helped businesses acquire financing, manage loans to minimize costs, and ensure smooth operations. The impact provides evidence that mainstreaming financial literacy training can enhance business performance nationwide.
This document discusses using technology to bridge the gap between rural development and financial inclusion in developing economies. It notes that while two billion people globally lack access to formal financial services, rural populations face even greater barriers to access due to issues like illiteracy and lack of infrastructure. The author examines whether technology can be used as a tool to increase financial inclusion for rural dwellers and help reduce poverty. While some progress has been made, most rural residents remain financially excluded. The paper aims to determine if technology can effectively bridge this gap or if individual and institutional factors prevent greater inclusion.
Microfinance Credit and Agricultural Sector Output in Nigeriaijtsrd
This study focused on microfinance credit and agricultural sector output in Nigeria. The main objective is to examine the effect of microfinance credit on agricultural sector output in Nigeria. The specific objectives are to find out the effect of microfinance loan, microfinance deposit and shareholder’s fund on agricultural sector output in Nigeria. The data were obtained from Central Bank of Nigeria Statistical Bulletin for the period 1992 to 2019. The Autoregressive Distributive Lag approach which is apt for data with mixed order of integration was employed to regress the microfinance credit variables on agricultural sector output which is the dependent variable The empirical analyses revealed that microfinance loans and microfinance deposits had a positive effect on Agricultural sector output while shareholders fund had negative effect on agricultural sector output in Nigeria. This work indicates that microfinance credit has only short run effect on Agricultural sector output in Nigeria. These findings depict among others that the micro financing hub of the financial system is capable of driving short term investment needs of the agricultural sector. The study recommends that an enabling environment capable of supporting the microfinance banks in microcredit delivery should be provided. This can be achieved by government, through mandating the CBN to undertake the responsibility of writing off at least 50 of losses incurred by micro finance institutions in an attempt to extend credits to rural dwellers who essentially engage in agriculture. They should also ensure that agricultural inputs which are made available to the rural farmers get to them not to the politicians and civil servants. Dr. Chinedu Blessing-Mike Obialor | Chigozie Camillus Ibe | Prof. Ikenna. C. Egungwu "Microfinance Credit and Agricultural Sector Output in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-5 , August 2022, URL: https://www.ijtsrd.com/papers/ijtsrd51742.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/51742/microfinance-credit-and-agricultural-sector-output-in-nigeria/dr-chinedu-blessingmike-obialor
Pradhan mantri jan dhan yojna pmjdy a new direction for mainstreaming the fin...IAEME Publication
The document discusses the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme launched in India in 2014 to promote financial inclusion. It aims to provide universal access to banking facilities, basic savings accounts, need-based credit, remittances, insurance and pension. The key objectives are achieving universal access to banking, providing RuPay debit cards and overdraft facilities to households, financial literacy programs, and credit guarantee and micro-insurance schemes. While progress has been made, challenges remain in reaching remote unbanked areas and developing simple, user-friendly services and products for low-income groups. The study examines the level of financial access and awareness of the scheme among urban informal workers in Odisha,
Implementing the aspects of financial inclusion in the phase of demonetisatio...IJLT EMAS
The concept of ‘financial inclusion’ was introduced by
the reserve bank of India in April 2005 with an objective of
delivering financial services to the economically challenged and
underdeveloped segment of the society at an affordable rate. RBI
encouraged the formal banking sector as well as the microfinance
sector to provide soft loans and savings facilities especially to the
poor with a flexible documentation process to attract them under
the umbrella of RBI. This will not only improve the financial
stake of the low-income group of the country, but also ensure
them a safe investment and will increase the portfolio size of the
bank and NBFCs. In 2014, The Government of India announced
‘Pradhan Mantri Jan Dhan Yojna” to expand the financial
inclusion project by bringing more people under banking and
banking spread sector. On 8th November 2016, Mr Narendra
Modi, Prime minister of India ceased 500 and 1000 rupee notes
as legal tender which can be termed as demonetization. Although
the immediate mission was to eradicate black money, fake money
and terror financing; it can be considered as a way forward to
the ‘Jan Dhan Yojna” and hence can be used as a strategy
instrument of imposing financial inclusion across the country.
This paper examines the advantages and disadvantages of
demonetization in implementing financial inclusion in India. In
spite of the fact that demonetization will force the people to make
their transaction through bank and NBFCs , there are serious
challenges like the liquidity crunch of the cash based segment of
the economy, the bank and digital literacy issues etc. In this
paper the challenging issues have been addressed as well as the
bottleneck of financial inclusion in post-demonetization period
has been discussed by identifying the crucial parameters like
percentage of people having bank account, the percentage of
people uses mobile and /or internet, the literacy percentage of the
country, the policy of the banks, the documentation requirement
of the bank and feasibility of the poor section etc.
Rani Singh-Financial Inclusion Issues and ChallengesRani Singh
This document discusses the challenges and issues around financial inclusion in India. It provides statistics that show progress expanding access to banking services, but notes that full inclusion has not been achieved. Key issues discussed include the need to cover all households, not just villages; ensuring technology platforms are robust; improving financial literacy; and overcoming operational challenges in rural areas. The Prime Minister's Jan Dhan Yojana aims to provide universal banking access to all households by 2015 through basic bank accounts with debit cards and insurance, but achieving widespread usage remains a challenge.
Micro Financing Of Small and Medium Enterprises (Smes) In Zambiainventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The document summarizes challenges around access to financial services in the agricultural sector in Mozambique. It outlines the country's policy framework and goals to increase access, including doubling access to services by 2025. It analyzes trends that show bank account ownership increasing but remaining low, with most farmers relying on informal services. The main constraints to smallholder access are low income, lack of collateral, limited coverage of institutions, and high interest rates. Recommendations include promoting private sector participation, value chains, land collateral models, mobile accounts, and data collection on smallholder access.
The document summarizes challenges around access to financial services in the agricultural sector in Mozambique. It outlines the country's policy framework and targets to increase access, including doubling access to financial services by 2025 under the Malabo goals. The results section analyzes trends in bank accounts, electronic payments, and savings groups. Smallholder farmers have low access to formal financial services at 8%, relying more on informal options. Barriers to access include low incomes, lack of collateral, and distance from financial institutions. Recommendations include promoting private sector participation, value chains, land-based lending, mobile payments, and expanding rural agents.
The document discusses a study that examines the effects of financial inclusion on the growth of cottage industries in Nigeria from 1995 to 2017. It begins with background information on cottage industries in Nigeria and the importance of financial inclusion for their growth. The study uses annual time series data from 1995 to 2017 to analyze the relationship between financial inclusion indicators and the growth of cottage industries. The statistical tools used are unit root test, cointegration test, and error correction model test. The results found that Agricultural Credit Guarantee Scheme Fund and microfinance loans and advances have a positive but not statistically significant impact on cottage industry growth. Small and medium enterprise deposits had a negative impact while microfinance loan to asset ratio had a positive and significant effect. Overall, the study
Indonesia has potential for microfinance market development through micro-businesses, which represent over 55 million enterprises and contribute to economic growth. However, only 10% of Indonesia's 100 million potential microfinance clients currently have access to financial services. New regulations require banks to allocate 20% of loans to microloans by 2018, opening opportunities to expand access. Indonesia has a long history of microfinance and over 60,000 microfinance institutions, but penetration rates remain low at 0.2% compared to other countries. The potential market can be developed through addressing demographic challenges in reaching rural communities and improving access in underserved areas.
Rural entrepreneurship plays an important role in India's economic development. However, rural entrepreneurs face many challenges such as lack of access to capital, lack of education and technical skills, and lack of marketing support. They also lack confidence and face socio-economic barriers. Strengthening rural entrepreneurship through improved access to training programs, financial assistance, and exposure could help address poverty and backwardness in rural areas and accelerate rural development. Addressing the challenges faced by rural entrepreneurs is important for inclusive economic growth in India.
Similar to TECHNOLOGICAL ADVANCES IN MICROFINANCE BANKS AND ECONOMIC GROWTH IN NIGERIA (20)
Submission Deadline: 30th September 2022
Acceptance Notification: Within Three Days’ time period
Online Publication: Within 24 Hrs. time Period
Expected Date of Dispatch of Printed Journal: 5th October 2022
MODELING AND ANALYSIS OF SURFACE ROUGHNESS AND WHITE LATER THICKNESS IN WIRE-...IAEME Publication
White layer thickness (WLT) formed and surface roughness in wire electric discharge turning (WEDT) of tungsten carbide composite has been made to model through response surface methodology (RSM). A Taguchi’s standard Design of experiments involving five input variables with three levels has been employed to establish a mathematical model between input parameters and responses. Percentage of cobalt content, spindle speed, Pulse on-time, wire feed and pulse off-time were changed during the experimental tests based on the Taguchi’s orthogonal array L27 (3^13). Analysis of variance (ANOVA) revealed that the mathematical models obtained can adequately describe performance within the parameters of the factors considered. There was a good agreement between the experimental and predicted values in this study.
A STUDY ON THE REASONS FOR TRANSGENDER TO BECOME ENTREPRENEURSIAEME Publication
The study explores the reasons for a transgender to become entrepreneurs. In this study transgender entrepreneur was taken as independent variable and reasons to become as dependent variable. Data were collected through a structured questionnaire containing a five point Likert Scale. The study examined the data of 30 transgender entrepreneurs in Salem Municipal Corporation of Tamil Nadu State, India. Simple Random sampling technique was used. Garrett Ranking Technique (Percentile Position, Mean Scores) was used as the analysis for the present study to identify the top 13 stimulus factors for establishment of trans entrepreneurial venture. Economic advancement of a nation is governed upon the upshot of a resolute entrepreneurial doings. The conception of entrepreneurship has stretched and materialized to the socially deflated uncharted sections of transgender community. Presently transgenders have smashed their stereotypes and are making recent headlines of achievements in various fields of our Indian society. The trans-community is gradually being observed in a new light and has been trying to achieve prospective growth in entrepreneurship. The findings of the research revealed that the optimistic changes are taking place to change affirmative societal outlook of the transgender for entrepreneurial ventureship. It also laid emphasis on other transgenders to renovate their traditional living. The paper also highlights that legislators, supervisory body should endorse an impartial canons and reforms in Tamil Nadu Transgender Welfare Board Association.
BROAD UNEXPOSED SKILLS OF TRANSGENDER ENTREPRENEURSIAEME Publication
Since ages gender difference is always a debatable theme whether caused by nature, evolution or environment. The birth of a transgender is dreadful not only for the child but also for their parents. The pain of living in the wrong physique and treated as second class victimized citizen is outrageous and fully harboured with vicious baseless negative scruples. For so long, social exclusion had perpetuated inequality and deprivation experiencing ingrained malign stigma and besieged victims of crime or violence across their life spans. They are pushed into the murky way of life with a source of eternal disgust, bereft sexual potency and perennial fear. Although they are highly visible but very little is known about them. The common public needs to comprehend the ravaged arrogance on these insensitive souls and assist in integrating them into the mainstream by offering equal opportunity, treat with humanity and respect their dignity. Entrepreneurship in the current age is endorsing the gender fairness movement. Unstable careers and economic inadequacy had inclined one of the gender variant people called Transgender to become entrepreneurs. These tiny budding entrepreneurs resulted in economic transition by means of employment, free from the clutches of stereotype jobs, raised standard of living and handful of financial empowerment. Besides all these inhibitions, they were able to witness a platform for skill set development that ignited them to enter into entrepreneurial domain. This paper epitomizes skill sets involved in trans-entrepreneurs of Thoothukudi Municipal Corporation of Tamil Nadu State and is a groundbreaking determination to sightsee various skills incorporated and the impact on entrepreneurship.
DETERMINANTS AFFECTING THE USER'S INTENTION TO USE MOBILE BANKING APPLICATIONSIAEME Publication
The banking and financial services industries are experiencing increased technology penetration. Among them, the banking industry has made technological advancements to better serve the general populace. The economy focused on transforming the banking sector's system into a cashless, paperless, and faceless one. The researcher wants to evaluate the user's intention for utilising a mobile banking application. The study also examines the variables affecting the user's behaviour intention when selecting specific applications for financial transactions. The researcher employed a well-structured questionnaire and a descriptive study methodology to gather the respondents' primary data utilising the snowball sampling technique. The study includes variables like performance expectations, effort expectations, social impact, enabling circumstances, and perceived risk. Each of the aforementioned variables has a major impact on how users utilise mobile banking applications. The outcome will assist the service provider in comprehending the user's history with mobile banking applications.
ANALYSE THE USER PREDILECTION ON GPAY AND PHONEPE FOR DIGITAL TRANSACTIONSIAEME Publication
Technology upgradation in banking sector took the economy to view that payment mode towards online transactions using mobile applications. This system enabled connectivity between banks, Merchant and user in a convenient mode. there are various applications used for online transactions such as Google pay, Paytm, freecharge, mobikiwi, oxygen, phonepe and so on and it also includes mobile banking applications. The study aimed at evaluating the predilection of the user in adopting digital transaction. The study is descriptive in nature. The researcher used random sample techniques to collect the data. The findings reveal that mobile applications differ with the quality of service rendered by Gpay and Phonepe. The researcher suggest the Phonepe application should focus on implementing the application should be user friendly interface and Gpay on motivating the users to feel the importance of request for money and modes of payments in the application.
VOICE BASED ATM FOR VISUALLY IMPAIRED USING ARDUINOIAEME Publication
The prototype of a voice-based ATM for visually impaired using Arduino is to help people who are blind. This uses RFID cards which contain users fingerprint encrypted on it and interacts with the users through voice commands. ATM operates when sensor detects the presence of one person in the cabin. After scanning the RFID card, it will ask to select the mode like –normal or blind. User can select the respective mode through voice input, if blind mode is selected the balance check or cash withdraw can be done through voice input. Normal mode procedure is same as the existing ATM.
IMPACT OF EMOTIONAL INTELLIGENCE ON HUMAN RESOURCE MANAGEMENT PRACTICES AMONG...IAEME Publication
There is increasing acceptability of emotional intelligence as a major factor in personality assessment and effective human resource management. Emotional intelligence as the ability to build capacity, empathize, co-operate, motivate and develop others cannot be divorced from both effective performance and human resource management systems. The human person is crucial in defining organizational leadership and fortunes in terms of challenges and opportunities and walking across both multinational and bilateral relationships. The growing complexity of the business world requires a great deal of self-confidence, integrity, communication, conflict and diversity management to keep the global enterprise within the paths of productivity and sustainability. Using the exploratory research design and 255 participants the result of this original study indicates strong positive correlation between emotional intelligence and effective human resource management. The paper offers suggestions on further studies between emotional intelligence and human capital development and recommends for conflict management as an integral part of effective human resource management.
VISUALISING AGING PARENTS & THEIR CLOSE CARERS LIFE JOURNEY IN AGING ECONOMYIAEME Publication
Our life journey, in general, is closely defined by the way we understand the meaning of why we coexist and deal with its challenges. As we develop the "inspiration economy", we could say that nearly all of the challenges we have faced are opportunities that help us to discover the rest of our journey. In this note paper, we explore how being faced with the opportunity of being a close carer for an aging parent with dementia brought intangible discoveries that changed our insight of the meaning of the rest of our life journey.
A STUDY ON THE IMPACT OF ORGANIZATIONAL CULTURE ON THE EFFECTIVENESS OF PERFO...IAEME Publication
The main objective of this study is to analyze the impact of aspects of Organizational Culture on the Effectiveness of the Performance Management System (PMS) in the Health Care Organization at Thanjavur. Organizational Culture and PMS play a crucial role in present-day organizations in achieving their objectives. PMS needs employees’ cooperation to achieve its intended objectives. Employees' cooperation depends upon the organization’s culture. The present study uses exploratory research to examine the relationship between the Organization's culture and the Effectiveness of the Performance Management System. The study uses a Structured Questionnaire to collect the primary data. For this study, Thirty-six non-clinical employees were selected from twelve randomly selected Health Care organizations at Thanjavur. Thirty-two fully completed questionnaires were received.
Living in 21st century in itself reminds all of us the necessity of police and its administration. As more and more we are entering into the modern society and culture, the more we require the services of the so called ‘Khaki Worthy’ men i.e., the police personnel. Whether we talk of Indian police or the other nation’s police, they all have the same recognition as they have in India. But as already mentioned, their services and requirements are different after the like 26th November, 2008 incidents, where they without saving their own lives has sacrificed themselves without any hitch and without caring about their respective family members and wards. In other words, they are like our heroes and mentors who can guide us from the darkness of fear, militancy, corruption and other dark sides of life and so on. Now the question arises, if Gandhi would have been alive today, what would have been his reaction/opinion to the police and its functioning? Would he have some thing different in his mind now what he had been in his mind before the partition or would he be going to start some Satyagraha in the form of some improvement in the functioning of the police administration? Really these questions or rather night mares can come to any one’s mind, when there is too much confusion is prevailing in our minds, when there is too much corruption in the society and when the polices working is also in the questioning because of one or the other case throughout the India. It is matter of great concern that we have to thing over our administration and our practical approach because the police personals are also like us, they are part and parcel of our society and among one of us, so why we all are pin pointing towards them.
A STUDY ON TALENT MANAGEMENT AND ITS IMPACT ON EMPLOYEE RETENTION IN SELECTED...IAEME Publication
The goal of this study was to see how talent management affected employee retention in the selected IT organizations in Chennai. The fundamental issue was the difficulty to attract, hire, and retain talented personnel who perform well and the gap between supply and demand of talent acquisition and retaining them within the firms. The study's main goals were to determine the impact of talent management on employee retention in IT companies in Chennai, investigate talent management strategies that IT companies could use to improve talent acquisition, performance management, career planning and formulate retention strategies that the IT firms could use. The respondents were given a structured close-ended questionnaire with the 5 Point Likert Scale as part of the study's quantitative research design. The target population consisted of 289 IT professionals. The questionnaires were distributed and collected by the researcher directly. The Statistical Package for Social Sciences (SPSS) was used to collect and analyse the questionnaire responses. Hypotheses that were formulated for the various areas of the study were tested using a variety of statistical tests. The key findings of the study suggested that talent management had an impact on employee retention. The studies also found that there is a clear link between the implementation of talent management and retention measures. Management should provide enough training and development for employees, clarify job responsibilities, provide adequate remuneration packages, and recognise employees for exceptional performance.
ATTRITION IN THE IT INDUSTRY DURING COVID-19 PANDEMIC: LINKING EMOTIONAL INTE...IAEME Publication
Globally, Millions of dollars were spent by the organizations for employing skilled Information Technology (IT) professionals. It is costly to replace unskilled employees with IT professionals possessing technical skills and competencies that aid in interconnecting the business processes. The organization’s employment tactics were forced to alter by globalization along with technological innovations as they consistently diminish to remain lean, outsource to concentrate on core competencies along with restructuring/reallocate personnel to gather efficiency. As other jobs, organizations or professions have become reasonably more appropriate in a shifting employment landscape, the above alterations trigger both involuntary as well as voluntary turnover. The employee view on jobs is also afflicted by the COVID-19 pandemic along with the employee-driven labour market. So, having effective strategies is necessary to tackle the withdrawal rate of employees. By associating Emotional Intelligence (EI) along with Talent Management (TM) in the IT industry, the rise in attrition rate was analyzed in this study. Only 303 respondents were collected out of 350 participants to whom questionnaires were distributed. From the employees of IT organizations located in Bangalore (India), the data were congregated. A simple random sampling methodology was employed to congregate data as of the respondents. Generating the hypothesis along with testing is eventuated. The effect of EI and TM along with regression analysis between TM and EI was analyzed. The outcomes indicated that employee and Organizational Performance (OP) were elevated by effective EI along with TM.
INFLUENCE OF TALENT MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE A STUD...IAEME Publication
By implementing talent management strategy, organizations would have the option to retain their skilled professionals while additionally working on their overall performance. It is the course of appropriately utilizing the ideal individuals, setting them up for future top positions, exploring and dealing with their performance, and holding them back from leaving the organization. It is employee performance that determines the success of every organization. The firm quickly obtains an upper hand over its rivals in the event that its employees having particular skills that cannot be duplicated by the competitors. Thus, firms are centred on creating successful talent management practices and processes to deal with the unique human resources. Firms are additionally endeavouring to keep their top/key staff since on the off chance that they leave; the whole store of information leaves the firm's hands. The study's objective was to determine the impact of talent management on organizational performance among the selected IT organizations in Chennai. The study recommends that talent management limitedly affects performance. On the off chance that this talent is appropriately management and implemented properly, organizations might benefit as much as possible from their maintained assets to support development and productivity, both monetarily and non-monetarily.
A STUDY OF VARIOUS TYPES OF LOANS OF SELECTED PUBLIC AND PRIVATE SECTOR BANKS...IAEME Publication
Banking regulations act of India, 1949 defines banking as “acceptance of deposits for the purpose of lending or investment from the public, repayment on demand or otherwise and withdrawable through cheques, drafts order or otherwise”, the major participants of the Indian financial system are commercial banks, the financial institution encompassing term lending institutions. Investments institutions, specialized financial institution and the state level development banks, non banking financial companies (NBFC) and other market intermediaries such has the stock brokers and money lenders are among the oldest of the certain variants of NBFC and the oldest market participants. The asset quality of banks is one of the most important indicators of their financial health. The Indian banking sector has been facing severe problems of increasing Non- Performing Assets (NPAs). The NPAs growth directly and indirectly affects the quality of assets and profitability of banks. It also shows the efficiency of banks credit risk management and the recovery effectiveness. NPA do not generate any income, whereas, the bank is required to make provisions for such as assets that why is a double edge weapon. This paper outlines the concept of quality of bank loans of different types like Housing, Agriculture and MSME loans in state Haryana of selected public and private sector banks. This study is highlighting problems associated with the role of commercial bank in financing Small and Medium Scale Enterprises (SME). The overall objective of the research was to assess the effect of the financing provisions existing for the setting up and operations of MSMEs in the country and to generate recommendations for more robust financing mechanisms for successful operation of the MSMEs, in turn understanding the impact of MSME loans on financial institutions due to NPA. There are many research conducted on the topic of Non- Performing Assets (NPA) Management, concerning particular bank, comparative study of public and private banks etc. In this paper the researcher is considering the aggregate data of selected public sector and private sector banks and attempts to compare the NPA of Housing, Agriculture and MSME loans in state Haryana of public and private sector banks. The tools used in the study are average and Anova test and variance. The findings reveal that NPA is common problem for both public and private sector banks and is associated with all types of loans either that is housing loans, agriculture loans and loans to SMES. NPAs of both public and private sector banks show the increasing trend. In 2010-11 GNPA of public and private sector were at same level it was 2% but after 2010-11 it increased in many fold and at present there is GNPA in some more than 15%. It shows the dark area of Indian banking sector.
EXPERIMENTAL STUDY OF MECHANICAL AND TRIBOLOGICAL RELATION OF NYLON/BaSO4 POL...IAEME Publication
An experiment conducted in this study found that BaSO4 changed Nylon 6's mechanical properties. By changing the weight ratios, BaSO4 was used to make Nylon 6. This Researcher looked into how hard Nylon-6/BaSO4 composites are and how well they wear. Experiments were done based on Taguchi design L9. Nylon-6/BaSO4 composites can be tested for their hardness number using a Rockwell hardness testing apparatus. On Nylon/BaSO4, the wear behavior was measured by a wear monitor, pinon-disc friction by varying reinforcement, sliding speed, and sliding distance, and the microstructure of the crack surfaces was observed by SEM. This study provides significant contributions to ultimate strength by increasing BaSO4 content up to 16% in the composites, and sliding speed contributes 72.45% to the wear rate
ROLE OF SOCIAL ENTREPRENEURSHIP IN RURAL DEVELOPMENT OF INDIA - PROBLEMS AND ...IAEME Publication
The majority of the population in India lives in villages. The village is the back bone of the country. Village or rural industries play an important role in the national economy, particularly in the rural development. Developing the rural economy is one of the key indicators towards a country’s success. Whether it be the need to look after the welfare of the farmers or invest in rural infrastructure, Governments have to ensure that rural development isn’t compromised. The economic development of our country largely depends on the progress of rural areas and the standard of living of rural masses. Village or rural industries play an important role in the national economy, particularly in the rural development. Rural entrepreneurship is based on stimulating local entrepreneurial talent and the subsequent growth of indigenous enterprises. It recognizes opportunity in the rural areas and accelerates a unique blend of resources either inside or outside of agriculture. Rural entrepreneurship brings an economic value to the rural sector by creating new methods of production, new markets, new products and generate employment opportunities thereby ensuring continuous rural development. Social Entrepreneurship has the direct and primary objective of serving the society along with the earning profits. So, social entrepreneurship is different from the economic entrepreneurship as its basic objective is not to earn profits but for providing innovative solutions to meet the society needs which are not taken care by majority of the entrepreneurs as they are in the business for profit making as a sole objective. So, the Social Entrepreneurs have the huge growth potential particularly in the developing countries like India where we have huge societal disparities in terms of the financial positions of the population. Still 22 percent of the Indian population is below the poverty line and also there is disparity among the rural & urban population in terms of families living under BPL. 25.7 percent of the rural population & 13.7 percent of the urban population is under BPL which clearly shows the disparity of the poor people in the rural and urban areas. The need to develop social entrepreneurship in agriculture is dictated by a large number of social problems. Such problems include low living standards, unemployment, and social tension. The reasons that led to the emergence of the practice of social entrepreneurship are the above factors. The research problem lays upon disclosing the importance of role of social entrepreneurship in rural development of India. The paper the tendencies of social entrepreneurship in India, to present successful examples of such business for providing recommendations how to improve situation in rural areas in terms of social entrepreneurship development. Indian government has made some steps towards development of social enterprises, social entrepreneurship, and social in- novation, but a lot remains to be improved.
OPTIMAL RECONFIGURATION OF POWER DISTRIBUTION RADIAL NETWORK USING HYBRID MET...IAEME Publication
Distribution system is a critical link between the electric power distributor and the consumers. Most of the distribution networks commonly used by the electric utility is the radial distribution network. However in this type of network, it has technical issues such as enormous power losses which affect the quality of the supply. Nowadays, the introduction of Distributed Generation (DG) units in the system help improve and support the voltage profile of the network as well as the performance of the system components through power loss mitigation. In this study network reconfiguration was done using two meta-heuristic algorithms Particle Swarm Optimization and Gravitational Search Algorithm (PSO-GSA) to enhance power quality and voltage profile in the system when simultaneously applied with the DG units. Backward/Forward Sweep Method was used in the load flow analysis and simulated using the MATLAB program. Five cases were considered in the Reconfiguration based on the contribution of DG units. The proposed method was tested using IEEE 33 bus system. Based on the results, there was a voltage profile improvement in the system from 0.9038 p.u. to 0.9594 p.u.. The integration of DG in the network also reduced power losses from 210.98 kW to 69.3963 kW. Simulated results are drawn to show the performance of each case.
APPLICATION OF FRUGAL APPROACH FOR PRODUCTIVITY IMPROVEMENT - A CASE STUDY OF...IAEME Publication
Manufacturing industries have witnessed an outburst in productivity. For productivity improvement manufacturing industries are taking various initiatives by using lean tools and techniques. However, in different manufacturing industries, frugal approach is applied in product design and services as a tool for improvement. Frugal approach contributed to prove less is more and seems indirectly contributing to improve productivity. Hence, there is need to understand status of frugal approach application in manufacturing industries. All manufacturing industries are trying hard and putting continuous efforts for competitive existence. For productivity improvements, manufacturing industries are coming up with different effective and efficient solutions in manufacturing processes and operations. To overcome current challenges, manufacturing industries have started using frugal approach in product design and services. For this study, methodology adopted with both primary and secondary sources of data. For primary source interview and observation technique is used and for secondary source review has done based on available literatures in website, printed magazines, manual etc. An attempt has made for understanding application of frugal approach with the study of manufacturing industry project. Manufacturing industry selected for this project study is Mahindra and Mahindra Ltd. This paper will help researcher to find the connections between the two concepts productivity improvement and frugal approach. This paper will help to understand significance of frugal approach for productivity improvement in manufacturing industry. This will also help to understand current scenario of frugal approach in manufacturing industry. In manufacturing industries various process are involved to deliver the final product. In the process of converting input in to output through manufacturing process productivity plays very critical role. Hence this study will help to evolve status of frugal approach in productivity improvement programme. The notion of frugal can be viewed as an approach towards productivity improvement in manufacturing industries.
A MULTIPLE – CHANNEL QUEUING MODELS ON FUZZY ENVIRONMENTIAEME Publication
In this paper, we investigated a queuing model of fuzzy environment-based a multiple channel queuing model (M/M/C) ( /FCFS) and study its performance under realistic conditions. It applies a nonagonal fuzzy number to analyse the relevant performance of a multiple channel queuing model (M/M/C) ( /FCFS). Based on the sub interval average ranking method for nonagonal fuzzy number, we convert fuzzy number to crisp one. Numerical results reveal that the efficiency of this method. Intuitively, the fuzzy environment adapts well to a multiple channel queuing models (M/M/C) ( /FCFS) are very well.
Understanding Inductive Bias in Machine LearningSUTEJAS
This presentation explores the concept of inductive bias in machine learning. It explains how algorithms come with built-in assumptions and preferences that guide the learning process. You'll learn about the different types of inductive bias and how they can impact the performance and generalizability of machine learning models.
The presentation also covers the positive and negative aspects of inductive bias, along with strategies for mitigating potential drawbacks. We'll explore examples of how bias manifests in algorithms like neural networks and decision trees.
By understanding inductive bias, you can gain valuable insights into how machine learning models work and make informed decisions when building and deploying them.
Embedded machine learning-based road conditions and driving behavior monitoringIJECEIAES
Car accident rates have increased in recent years, resulting in losses in human lives, properties, and other financial costs. An embedded machine learning-based system is developed to address this critical issue. The system can monitor road conditions, detect driving patterns, and identify aggressive driving behaviors. The system is based on neural networks trained on a comprehensive dataset of driving events, driving styles, and road conditions. The system effectively detects potential risks and helps mitigate the frequency and impact of accidents. The primary goal is to ensure the safety of drivers and vehicles. Collecting data involved gathering information on three key road events: normal street and normal drive, speed bumps, circular yellow speed bumps, and three aggressive driving actions: sudden start, sudden stop, and sudden entry. The gathered data is processed and analyzed using a machine learning system designed for limited power and memory devices. The developed system resulted in 91.9% accuracy, 93.6% precision, and 92% recall. The achieved inference time on an Arduino Nano 33 BLE Sense with a 32-bit CPU running at 64 MHz is 34 ms and requires 2.6 kB peak RAM and 139.9 kB program flash memory, making it suitable for resource-constrained embedded systems.
Electric vehicle and photovoltaic advanced roles in enhancing the financial p...IJECEIAES
Climate change's impact on the planet forced the United Nations and governments to promote green energies and electric transportation. The deployments of photovoltaic (PV) and electric vehicle (EV) systems gained stronger momentum due to their numerous advantages over fossil fuel types. The advantages go beyond sustainability to reach financial support and stability. The work in this paper introduces the hybrid system between PV and EV to support industrial and commercial plants. This paper covers the theoretical framework of the proposed hybrid system including the required equation to complete the cost analysis when PV and EV are present. In addition, the proposed design diagram which sets the priorities and requirements of the system is presented. The proposed approach allows setup to advance their power stability, especially during power outages. The presented information supports researchers and plant owners to complete the necessary analysis while promoting the deployment of clean energy. The result of a case study that represents a dairy milk farmer supports the theoretical works and highlights its advanced benefits to existing plants. The short return on investment of the proposed approach supports the paper's novelty approach for the sustainable electrical system. In addition, the proposed system allows for an isolated power setup without the need for a transmission line which enhances the safety of the electrical network
Comparative analysis between traditional aquaponics and reconstructed aquapon...bijceesjournal
The aquaponic system of planting is a method that does not require soil usage. It is a method that only needs water, fish, lava rocks (a substitute for soil), and plants. Aquaponic systems are sustainable and environmentally friendly. Its use not only helps to plant in small spaces but also helps reduce artificial chemical use and minimizes excess water use, as aquaponics consumes 90% less water than soil-based gardening. The study applied a descriptive and experimental design to assess and compare conventional and reconstructed aquaponic methods for reproducing tomatoes. The researchers created an observation checklist to determine the significant factors of the study. The study aims to determine the significant difference between traditional aquaponics and reconstructed aquaponics systems propagating tomatoes in terms of height, weight, girth, and number of fruits. The reconstructed aquaponics system’s higher growth yield results in a much more nourished crop than the traditional aquaponics system. It is superior in its number of fruits, height, weight, and girth measurement. Moreover, the reconstructed aquaponics system is proven to eliminate all the hindrances present in the traditional aquaponics system, which are overcrowding of fish, algae growth, pest problems, contaminated water, and dead fish.
Redefining brain tumor segmentation: a cutting-edge convolutional neural netw...IJECEIAES
Medical image analysis has witnessed significant advancements with deep learning techniques. In the domain of brain tumor segmentation, the ability to
precisely delineate tumor boundaries from magnetic resonance imaging (MRI)
scans holds profound implications for diagnosis. This study presents an ensemble convolutional neural network (CNN) with transfer learning, integrating
the state-of-the-art Deeplabv3+ architecture with the ResNet18 backbone. The
model is rigorously trained and evaluated, exhibiting remarkable performance
metrics, including an impressive global accuracy of 99.286%, a high-class accuracy of 82.191%, a mean intersection over union (IoU) of 79.900%, a weighted
IoU of 98.620%, and a Boundary F1 (BF) score of 83.303%. Notably, a detailed comparative analysis with existing methods showcases the superiority of
our proposed model. These findings underscore the model’s competence in precise brain tumor localization, underscoring its potential to revolutionize medical
image analysis and enhance healthcare outcomes. This research paves the way
for future exploration and optimization of advanced CNN models in medical
imaging, emphasizing addressing false positives and resource efficiency.
DEEP LEARNING FOR SMART GRID INTRUSION DETECTION: A HYBRID CNN-LSTM-BASED MODELgerogepatton
As digital technology becomes more deeply embedded in power systems, protecting the communication
networks of Smart Grids (SG) has emerged as a critical concern. Distributed Network Protocol 3 (DNP3)
represents a multi-tiered application layer protocol extensively utilized in Supervisory Control and Data
Acquisition (SCADA)-based smart grids to facilitate real-time data gathering and control functionalities.
Robust Intrusion Detection Systems (IDS) are necessary for early threat detection and mitigation because
of the interconnection of these networks, which makes them vulnerable to a variety of cyberattacks. To
solve this issue, this paper develops a hybrid Deep Learning (DL) model specifically designed for intrusion
detection in smart grids. The proposed approach is a combination of the Convolutional Neural Network
(CNN) and the Long-Short-Term Memory algorithms (LSTM). We employed a recent intrusion detection
dataset (DNP3), which focuses on unauthorized commands and Denial of Service (DoS) cyberattacks, to
train and test our model. The results of our experiments show that our CNN-LSTM method is much better
at finding smart grid intrusions than other deep learning algorithms used for classification. In addition,
our proposed approach improves accuracy, precision, recall, and F1 score, achieving a high detection
accuracy rate of 99.50%.
Batteries -Introduction – Types of Batteries – discharging and charging of battery - characteristics of battery –battery rating- various tests on battery- – Primary battery: silver button cell- Secondary battery :Ni-Cd battery-modern battery: lithium ion battery-maintenance of batteries-choices of batteries for electric vehicle applications.
Fuel Cells: Introduction- importance and classification of fuel cells - description, principle, components, applications of fuel cells: H2-O2 fuel cell, alkaline fuel cell, molten carbonate fuel cell and direct methanol fuel cells.
International Conference on NLP, Artificial Intelligence, Machine Learning an...gerogepatton
International Conference on NLP, Artificial Intelligence, Machine Learning and Applications (NLAIM 2024) offers a premier global platform for exchanging insights and findings in the theory, methodology, and applications of NLP, Artificial Intelligence, Machine Learning, and their applications. The conference seeks substantial contributions across all key domains of NLP, Artificial Intelligence, Machine Learning, and their practical applications, aiming to foster both theoretical advancements and real-world implementations. With a focus on facilitating collaboration between researchers and practitioners from academia and industry, the conference serves as a nexus for sharing the latest developments in the field.
2. Lawrence Uchenna OKOYE, Alexander Ehimare OMANKHANLEN, Ado AHMED and
Amanosi OJO
http://www.iaeme.com/IJCIET/index.asp 61 editor@iaeme.com
Cite this Article: Lawrence Uchenna OKOYE, Alexander Ehimare
OMANKHANLEN, Ado AHMED and Amanosi OJO, Technological Advances in
Microfinance Banks and Economic Growth in Nigeria, International Journal of Civil
Engineering and Technology, 10(3), 2019, pp. 60-71.
http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=10&IType=03
1. INTRODUCTION
Growth can be said to be inclusive when its process is focused on bringing the hitherto
excluded economic agents into the mainstream of economic activity so that they are able to
contribute to or tap from the benefits of enhanced economic growth. Conventionally, an
economy is made up of rural and urban dwellers with the bulk of economic activities
concentrated in the urban areas. To support and maintain the growth and conduct of
economic activities in the urban areas, infrastructural development is also concentrated in
these areas. The result of the skewed development pattern is the rural-to-urban migration with
the result that the rural areas become under-populated and the urban become over-populated.
Urban over-population has attendant adverse social implications like upsurge in the level of
crime, traffic congestion and environmental pollution, etc. while rural under-population leads
to sub-optimal utilization or engagement of rural resources.
The role of finance in the growth process of an economy is widely acknowledged in
finance and economic literature (Bagehot, 1873; Gurley and Shaw, 1955; Schumpeter, 1912;
Mckinnon, 1973). Finance affects the real sector through two main channels, namely the
capital accumulation and technological innovation channels. In the context of capital
accumulation, financial savings is a major driver of the investment process. Except by
engaging the option of deficit financing, investment can only be undertaken to the extent of
capital available. On the technological innovation channel, finance is required to transform
ideas into products. Without adequate funding, ideas, no matter how novel, remain what they
are, just ideas. According to Adegbite (2015), majority of innovative projects executed during
the industrial revolution in Europe had been conceived much earlier than the revolution era
but could not be implemented due to lack of requisite funding.
One approach to mainstreaming the innovative and entrepreneurial talents of the rural
population for national economic growth is financial inclusion. The major objective of this
growth and development-oriented strategy is to make financial services available to all
members of the society (irrespective of status) at affordable costs. In spite of immense
economic potentials of the rural population, they have largely been excluded from financial
services by the conventional financial service providers who consider service delivery to this
segment of the market as not commercially feasible. Meeting the needs of the rural
population for financial services can therefore be better achieved through alternative and non-
conventional financial institutions like microfinance banks where profit is not a primary
consideration. The activity of such special purpose institution can productively engage the
immense economic potential of the rural population thereby improving the living condition of
the rural dwellers through enhanced household income and decent means of livelihood and in
the process contribute to growth and development of the national economy.
It was against the background of adverse implications of undue concentration of formal
financial service providers in the urban areas for inclusive economic growth that the rural
banking scheme was introduced in Nigeria in 1977 to deepen the financial capability of banks
by extending financial services delivery to under-banked rural dwellers as well as integrate
rural financial intermediation with the formal banking sector (Okafor, 2011). The scheme was
designed to cultivate banking habit, mobilize rural savings, promote rural credit delivery and
3. Technological Advances in Microfinance Banks and Economic Growth in Nigeria
http://www.iaeme.com/IJCIET/index.asp 62 editor@iaeme.com
reduce rural-to-urban migration of both human and financial resources. Under the scheme,
commercial banks were mandated to establish branch offices in the rural areas to offer
financial services to the rural dwellers. To deepen the impact of the scheme on the rural
economy, the Central Bank of Nigeria (CBN) issued a policy directive requiring banks to set
aside a minimum of 30 per cent of deposits mobilized by each rural bank to provide credit to
prospective loan applicants from the community.
However, with the banking sector reforms that attended the introduction of the structural
adjustment programme (SAP) in 1986, the Nigerian banking environment was liberalized and
banking business became largely market-driven. In response to the reform, most of the rural
branches were closed as they could not meet the profit expectations of their respective head
offices. To sustain the participation of the rural population in mainstream economic activities
through enhance credit delivery, the Peoples Bank of Nigeria (PBN) was established in 1990
to extend credit facilities to the rural poor thereby facilitating self-employment and poverty
alleviation at the grassroots in order to improve on the productive base of the rural economy
in particular, and by extension the national economy (Okafor, 2000). Owing to low
capitalization, the bank cannot provide substantial amount of credit to finance sustainable
projects and does not offer a wide range of financial services. The Community Bank (CB)
model was therefore introduced in 1991 to provide a wide range of financial services thereby
serving as a one-stop-shop to rural entrepreneurs. At inception, the CBs proved to be
effective agents for savings mobilization and micro-credit delivery in the rural areas but over
time there was an increasing propensity to channel local savings to portfolio investments
outside their host communities for higher returns.
Against this background, the Microfinance banking model was introduced in 2005 “to
enhance the access of micro-entrepreneurs and low income households to financial services
required to expand and modernize their operations in order to contribute to rapid economic
growth” (Central Bank of Nigeria, 2011). Unlike the conventional banks, microfinance banks
(MFBs) target low income clients in the delivery of financial services like deposits, loans,
fund transfer, insurance (micro) and a variety of non-financial services. The operations of
MFBs are characterized by low level of savings and or credits, de-emphasis on asset-based
collateral and simplicity of operations. The rural segments of the society are the major targets
of microfinance institutions (MFIs). The rural communities embody huge but hidden
potentials in able-bodied men and women with capacity, drive and commitment to rise above
obstacles to self-sufficiency. A significant proportion of the informal sector is in the rural
areas and as Okoye, Erin, Ado and Isibor (2017) averred, this sector presents a significant
number of active economic agents that can fast-track the process of growth and development
if financially empowered. Access to credit helps unlock these potentials and channeling them
to productive activities thereby raising the productivity of the economy. George (2010) posits
that through active engagement of the rural poor in entrepreneurial activities, micro-credit
delivery enhances the income-generating capacity of the financially vulnerable members of
the society, reduces rural unemployment, diversifies the rural economy and in the process
lowers cost of government support services delivery while raising national income through
taxation. Okoye, Adetiloye, Erin and Evbuomwan (2016) further argue that as more people
become empowered through a policy of financial inclusion, they engage in economic
activities that enable them live above poverty and contribute to the growth of the national
economy.
This paper focused on analyzing the trend in the national output in Nigeria since 2006 to
determine the extent to which provision of microfinance services like credit and deposit
facilities to the rural population have contributed to its growth. Empirical literature on
4. Lawrence Uchenna OKOYE, Alexander Ehimare OMANKHANLEN, Ado AHMED and
Amanosi OJO
http://www.iaeme.com/IJCIET/index.asp 63 editor@iaeme.com
microfinance has focused largely on its development-oriented aspect, hence the imperative to
explore its potential an engine of growth.
2. REVIEW OF RELATED LITERATURE
The microfinance banking model was formally introduced in Nigeria in December 2005 to
drive inclusive participation of all economic units towards achieving rapid economic growth.
The policy thrust of this banking model was to improve access of micro entrepreneurs and
low income households to microcredit and other financial services necessary for the
expansion and modernization of their operations. The rationale for a paradigm shift from
conventional to the microfinance model for integrating this segment of the economic strata
into mainstream economy is the uniqueness of their operations which include smallness of
loans and savings, de-emphasis on collateral as a condition for credit delivery, and the simple
nature of their operations.
With advances in technology, banks have continued to change their method of operations
and service delivery in line with changing customer needs and sophistication (Okoye,
Omankhanlen, Okoh and Isibor, 2018). Microfinance banks (MFBs) are not by any means an
exception. Information and communication technology (ICT) devices are increasingly being
deployed by deposit money and microfinance banks to enhance access by financially
excluded members of the society to financial services, a practice which according to Okoye,
Adetiloye, Erin and Modebe (2016) supports the growth of economic activities.
In response to the growing popularity of microfinance, particularly among developing
nations, scholars have over the years engaged research to determine the role of micro-credit
in the economic health of a nation. Okafor (2000) defines micro-credit as an instrument for
driving economic growth and balanced development because it empowers grassroots
enterprises and therefore produces a derivative impact on the well-being and economic status
of the poor. Studies that focus on the economic significance of the activities of microfinance
institutions have largely focused on its poverty reduction or goal-oriented dimension. For
instance, Agbaeze and Onwuka (2014) examined the role of micro-credit in combating the
rising incidence of poverty in Nigeria using the multi-stage sampling technique that involved
a random selection of five households from a previously selected sample of twenty-one
communities. The Logit regression method was used to estimate the micro-credit impact on
poverty while Foster, Greer and Thorbecke (1984) method was used to evaluate the intensity
of poverty among the selected households. Evidence from the study indicated that access to
micro-credit significantly reduced the level of poverty in the selected sample.
Another impact assessment of micro-credit on poverty reduction conducted by
Chowdhury, Gosh and Wright (2002) produced strong empirical support for poverty
alleviation capacity of micro-credit. The study was based on a survey of 954 households in
Bangladesh and data gathered were analyzed using the logit regression technique. In
evaluating the socio-economic effect of micro-credit on the rural population in Bangladesh,
Hague, Rahman and Awal (2016) used survey data generated from 150 households selected
from 4 rural communities. The study which specifically examined how rural consumption,
income and savings respond to access to micro-credit produced evidence that access to credit
enhances rural sector participation in economic activities thereby empowering the rural poor
to acquire assets and improve on their living conditions. The work of Chavan and
Ramakumar (2002) supports the income enhancement aspect of the finding in Hague,
Rahman and Awal (2016) but showed that micro-credit has not significantly impacted
technology acquisition.
5. Technological Advances in Microfinance Banks and Economic Growth in Nigeria
http://www.iaeme.com/IJCIET/index.asp 64 editor@iaeme.com
The work of Appah, John and Soreh (2012) adopted purposive sampling technique in
selecting a sample of 286 women in Bayelsa State, Nigeria who are actively engaged in
small-scale business. Using the statistical method of Chi-square, ANOVA and descriptive
statistics, the study produced evidence of strong association between microfinance and
poverty reduction. The work of Kandemir and Aktas (2011) also produced empirical support
for poverty-reduction impact of micro-credit in Turkey. The result showed that by the
engagement of entrepreneurs through financial access, they create job opportunities, promote
regional development, create markets for products and support value addition.
Agba, Ocheni and Nkpoyen (2014) investigated the impact of micro-credit on poverty
reduction among low income workers who participate in microfinance schemes designed for
workers in this category. Purposive sampling method was used to select 540 participants from
9 local government areas (LGAs) in Akwa-Ibom State, Nigeria. The study covered 3 LGAs
from each of the 3 senatorial districts of the state. Six (6) communities were drawn (2 from
each LGA) from each senatorial district and 30 respondents were drawn from each
community. Data analysis was based on the Pearson Product Moment Correlation method.
The result affirmed strong positive correlation between micro-credit and poverty reduction. It
showed that workers’ access to credit drives their participation in SMEs which promotes
better living conditions.
Durrani, Usman, Malik and Ahmad (2011) examined how access to credit affects the
economic and social conditions of the poor in Pakistan. Social and economic indicators
examined in the study include income generation, improvement in life-style, standard or
quality of accommodation, purchasing power, expansion of business facility, self-
employment and technology adoption. Based on convenience sampling method,
questionnaires were administered on a sample of 100 rural poor from a Pakistani district who
have benefited from micro-credits. A response rate of 68 per cent was achieved and the
Pearson correlation method was adopted. The study showed that access to credit alleviates
poverty among the rural poor through consumption smoothing, better risk management,
micro-business engagement, enhanced earning capacity and improved living standards.
Onwumere, Ibe and Ugbam (2012) examined how micro-credit from MFBs affects the
poverty reduction and human capital development initiatives of the government. The study
covered the period 1999-2008. Estimation was based on the method of ordinary least squares.
Microfinance intermediation activity was represented as ratio of loans to deposits while
poverty index (PI) and human development index (HDI) were used as proxies for
development. The study showed non-significant negative effect of micro-credit on poverty
reduction. However, the effect on human capital development was positive.
Onaolapo (2015) conducted a study on how rural financial intermediation impacts
economic growth and development in Nigeria. The study presented evidence that economic
development, represented as per capita income (PCI) is strongly driven by rural loans and the
intermediation activities of the Agricultural Credit Guarantee Scheme Fund (ACGSF). It also
produced evidence that private sector credit is a major driver of economic growth while broad
money supply proved a great impediment to growth.
The work of Musomandera, Shukla and Luvanda (2015) examined the contribution of
microfinance to the growth of women SMEs in Rwanda using a sample of 275 women
entrepreneurs. Pearson correlation method was used to analyze data generated from the
sample through the use of questionnaires. The result showed strong positive correlation
between microfinance and the performance of women SMEs.
Babajide (2012) used panel data from a sample of 502 microfinance borrowers engaged
in small-scale enterprises to investigate the effect of micro-credit on micro and small
6. Lawrence Uchenna OKOYE, Alexander Ehimare OMANKHANLEN, Ado AHMED and
Amanosi OJO
http://www.iaeme.com/IJCIET/index.asp 65 editor@iaeme.com
enterprises’ growth in Nigeria. The study showed no evidence of strong growth-inducing
effect of micro-credit on the operations of micro and small enterprises. The work of Ahmad,
and Shah (2016) introduced a different dimension to microfinance literature by establishing
the place of entrepreneurial capacity in the interaction between microfinance and micro,
small and medium enterprises’ (MSMEs) growth. By analyzing panel data on 15 countries
from 2004-2015, the authors showed evidence of strong moderating effect of entrepreneurial
capacity in the link between microfinance and MSMEs growth and therefore concludes that
finance is not in itself a sufficient condition for growth.
Nwele, Ogbonna and Uduimo (2014), in their study, examined the extent to which the
lending activities of microfinance institutions (MFIs) have impacted the performance of the
Nigerian economy. They reported that micro-financing activities of MFIs did not
significantly impact the performance of the rural economy, hence the spill-over effect on the
national economy is quite minimal. Ayodele and Arogundade (2014) investigated the
response of Nigeria’s economic growth to the credit delivery role of microfinance
institutions. They adopted microfinance banks’ loan portfolio, assets and deposit liabilities as
explanatory variables while economic growth was measured by movements in GDP. Model
estimation was based on the method of ordinary least squares. The study showed that
microfinance bank lending has strong positive impact on economic growth. It however
showed that assets and deposits did not significantly drive growth.
Agbola, Acupan and Mahmood (2017) estimated the capacity of microfinance to reduce
poverty using education, health and living standards as proxies for poverty. A survey of 211
households in Philippines was undertaken out of which 105 were clients and 106 were non-
clients of the selected rural (microfinance) bank. Empirical investigation was based on the
method of analysis of variance (ANOVA). Though there was evidence that non-client
households are poorer than client households, the result was not significant.
Donou-Adonsou and Sylwester (2017) conducted an impact assessment of the lending
activities of MFIs and conventional banking institutions to determine how they affect
economic growth using a panel of 85 developing countries. The study period covered 2002-
2013 while empirical investigation was based on system-GMM technique. The study showed
that microfinance loans significantly drive growth but there is no evidence of strong positive
impact of bank loans on growth. In Murad and Idewele (2017), the authors investigated how
economic growth in Nigeria is affected by the lending activities of microfinance banks using
annual data for 1992-2012. The study produced significant short-run positive effect of
microfinance loans and deposits on economic growth. However, in the long-run, only
microfinance deposits showed strong positive impact on growth. Tripathi and Badugu (2015)
examined how major activities of MFIs (deposit taking and credit creation) affect economic
growth in India. The study which was based on exploratory research design showed that
credit delivery and deposit mobilization activities strongly influence growth process.
3. METHODOLOGY
The study followed the ex-post facto design which allows for the explanation of an event
from data or facts gathered over time on the event. The study was designed to estimate
growth implications of the intermediation activities of all registered MFBs in Nigeria
between 1992 and 2016. Data were collected from the statistical bulletin, a publication of the
Central Bank of Nigeria, and model estimation was based on the technique of the
autoregressive distributed lag (ARDL). Basic intermediation functions of MFBs (deposit
mobilization and credit creation) and lagged GDP were adopted as explanatory variables
while inflation and asset base were introduced as controlled variables.
7. Technological Advances in Microfinance Banks and Economic Growth in Nigeria
http://www.iaeme.com/IJCIET/index.asp 66 editor@iaeme.com
3.1. Model Specification
The model estimated in the study is implicitly presented as follows:
GDP = f(INFLR, MFBD, MFBLA, MFBA,GDPt-1) (1)
GDP = Gross Domestic Product (proxy for growth)
INFLR = Inflation rate
MFBD = Microfinance bank deposits
MFBLA = Microfinance bank loans and advances
MFBA = Microfinance bank assets
GDPt-1 = Lagged GDP
The above model stated in econometric form is as in equation (2) below:
Log
(2)
From the above model, β0 is the constant of the model while β1 – β5 are the parameters of
the independent variables, ε =Error term. The subscripts, t, refer to the time period of the
study which is 1992-2016. The variables, GDP, MFBD, MFBLA, MFBA and GDPt-1, are
transformed into logs to achieve standardized values of the variables in the model.
4. RESULTS AND DISCUSSION
Results obtained from the analysis of data are presented and discussed below:
4.1. Unit Root Test Results
To ascertain the time series state of the data, the Augmented Dickey Fuller (ADF) unit root
test was conducted. This is to avoid spurious estimates associated with non-stationary series.
The result is as presented in table 1.
Table 1 ADF Unit Root Test
Variables ADF Test Stat.
Critical Value @ 5
per cent sig level
Remark
Log MFBD -7.272044 -2.998064 Stationary at 1st
difference I(I)
Log MFBLA -6.284202 -2.998064 Stationary at 1st
difference I(I)
INFLR -4.665456 -2.998064 Stationary at 1st
difference I(I)
Log GDP -6.575438 -3.004861 Stationary at 2nd difference I(2)
Log MFBA -6.648840 -2.998064 Stationary at 1st
difference I(I)
Source: Researchers Computation, 2018
From the result, it was observed that none of the variables was stationary at level. At the
first difference, all the variables except GDP became stationary. It was at second differencing
that GDP showed stationary trend. Thus, at the second difference, the null hypothesis of non-
stationary trend is rejected for all the variables. Since the variables were not of same order of
integration, the autoregressive distributed lag method of estimation was adopted.
4.2. Regression Analysis
The regression estimates showing how the independent variables individually affect
economic growth are presented in table 2 as follows:
8. Lawrence Uchenna OKOYE, Alexander Ehimare OMANKHANLEN, Ado AHMED and
Amanosi OJO
http://www.iaeme.com/IJCIET/index.asp 67 editor@iaeme.com
Table 2 Autoregressive Distributed Lag (ARDL) Model Estimation Results
Variable Coefficient Std. Error t-Statistic Prob.*
LGDP(-1) 0.646895 0.165747 3.902908 0.0025
LGDP(-2) 0.377995 0.174513 2.165997 0.0531
LINFLR 0.108808 0.025930 4.196183 0.0015
LINFLR(-1) 0.038982 0.027735 1.405484 0.1875
LMFBA 0.195926 0.139530 1.404183 0.1879
LMFBA(-1) 0.065521 0.102014 0.642276 0.5339
LMFBA(-2) -0.397099 0.131036 -3.030454 0.0114
LMFBD 0.081333 0.115342 0.705143 0.4954
LMFBD(-1) -0.079532 0.108404 -0.733664 0.4785
LMFBD(-2) 0.457334 0.133096 3.436123 0.0056
LMFBLA -0.308493 0.071361 -4.323008 0.0012
C -0.556386 0.271129 -2.052107 0.0647
R-squared 0.999409 Mean dependent var 9.835019
Adjusted R-squared 0.998818 S.D. dependent var 1.275795
S.E. of regression 0.043867 Akaike info criterion -3.109438
Sum squared resid 0.021167 Schwarz criterion -2.517006
Log likelihood 47.75853 Hannan-Quinn criter. -2.960443
F-statistic 1690.685 Durbin-Watson stat 2.050505
Prob(F-statistic) 0.000000
Source: Researchers’ computation, 2018
The variables’ coefficients shown in table 2 indicate the response of the dependent
variable (Log GDP) to a unit change in an independent variable when other variables remain
unchanged. The constant of the above model (-0.556386) is negative and statistically
significant at the 1 per cent level. This implies that when all independent variables remain
unchanged, gross domestic product (GDP) declines by -0.5564 units. The coefficient for
inflation rate (Log INFLR) is 0.108808, positive and statistically significant at 1 per cent. The
implication of this result is that a unit increase in current year inflation rate will give rise to a
0.1088 unit increase in current year gross domestic product. The coefficient for one-period
lagged inflation rate, (INFLR (-1)), is 0.038982, positive but statistically non-significant. The
result indicates that as inflation rate is increased by 1 unit, current year’s gross domestic
product will increase by 0.03898 units, though not significant.
The coefficient for Microfinance bank assets (Log MFBA) is 0.195926 but statistically
not significant. The implication of this result is that a unit rise in current year Microfinance
bank assets will give rise to a 0.1959 units rise in current year Gross domestic product (GDP).
The coefficient for a one-period lagged microfinance bank assets (Log MFBA (-1)) is
9. Technological Advances in Microfinance Banks and Economic Growth in Nigeria
http://www.iaeme.com/IJCIET/index.asp 68 editor@iaeme.com
0.065521, positive but also statistically non-significant, an indication that as one-period
lagged microfinance bank assets is increased by 1 unit, current year GDP growth will
increase by 0.0655 units. The coefficient for two-period lagged Microfinance bank assets
(Log MFBA (-2)) is -0.397099, negative and statistically significant at 5 per cent. This
indicates that a unit increase in two previous years’ Microfinance bank assets will give rise to
a 0.397099 unit decrease in current year GDP growth.
The coefficient for Microfinance deposits (Log MFBD) is 0.081333, positive and
statistically non-significant, indicating that a unit increase in current year microfinance
deposits will give rise to 0.081 unit increase in current year GDP growth. Also, the
coefficient for one-period lagged Microfinance bank deposits (Log MFBD (-1)) is -0.079532,
negative and statistically non-significant, implying that a unit rise in previous year’s MFB
deposits will lead to a 0.0795 unit decrease in current year GDP growth. The coefficient for a
two-period lagged Microfinance bank deposits (MFBD (-2)) is 0.457334, positive and
statistically significant at the 5 per cent which indicates that a unit increase in two previous
years’ microfinance bank deposits will produce a 0.457 unit increase in current year GDP
growth
The coefficient for Microfinance loans and advances (Log MFBLA) is -0.308493,
negative and statistically significant. This suggests that a unit increase in current year
microfinance loans and advances will decrease current year GDP growth by 0.3085 units.
The coefficient for one period lagged gross domestic product (Log GDP (-1)) is
0.646895, positive and significant at 1 per cent. This means that previous year’s gross
domestic product positively and significantly affects the present level of national output at 1
per cent. As Gross domestic product proxies economic growth, it implies that a unit increase
in previous period’s economic growth will produce a 0.6469 units increase in present period
economic growth. The coefficient for two-period lagged gross domestic product (Log GDP (-
2)) is 0.377995 but not statistically significant at 5 per cent. This means that two previous
years’ gross domestic product negatively affects present gross domestic product though the
severity is not significant.
The R –squared of 0.999409, shown in lower segment of table 2, indicates that 99.94 per
cent of changes in current gross domestic product is explained by changes in the independent
variables. The adjusted R-squared of 0.998818 is marginally lower than the R-squared further
indicating a good fit for the estimated model. The Durbin-Watson statistic which tests for
serial correlation is 2.050505 and indicates the absence of serial correlation in the model.
Finally, the F-statistic of 1690.685 is statistically significant at the 1% level indicating strong
joint explanatory power of the independent variables.
4.3. Co-integration Test of Variables
To further validate the use of our data for policy decisions, the co-integration test for long-run
cohesion or stability was conducted using the autoregressive distributed lag (ARDL) Bounds
test. The F-stat from the bounds test is computed to investigate whether the regressors have
jointly and significantly explained the phenomenon under investigation. The results of ARDL
Bounds test for co-integration is presented in table 3.
10. Lawrence Uchenna OKOYE, Alexander Ehimare OMANKHANLEN, Ado AHMED and
Amanosi OJO
http://www.iaeme.com/IJCIET/index.asp 69 editor@iaeme.com
Table 3 ARDL Bounds Test for Co-integration
F-Bounds Test Null Hypothesis: No levels relationship
Test Statistic Value Signif. I(0) I(1)
F-statistic 11.48144 10% 2.2 3.09
K 4 5% 2.56 3.49
2.5% 2.88 3.87
1% 3.29 4.37
Source: Researchers’ computation, 2018
Evidence of co-integration between economic growth and microfinance bank variables is
established if the computed F-Statistic is greater than the upper bound of the 5 per cent
critical value. From table 3 it was observed that the computed F-statistic of the bounds test
which is given as 11.48144 is greater than the upper bound and lower bound critical values at
5% level of significance. Since the computed F-statistic is greater than the Pesaran critical
value for the upper bound 5% level of significance, we conclude that there is co-integrating
relationship between economic growth and micro-financing activities in Nigeria.
5. CONCLUSION AND RECOMMENDATIONS
The empirical results show that microfinance banks’ deposits play active role in driving the
wheels of economic growth in Nigeria. This suggests that microfinance banks are effectively
mobilizing rural deposits, an activity that helps to track rural commercial transactions thereby
enhancing tax collection by the government and in the process growing the national income.
Through financial inclusion rural entrepreneurs can be profiled for tax purposes as their
financial transactions provide a guide for tax assessment. The result also shows that
microfinance banks’ loans and advances did not support economic growth within the context
of our study. Poor credit administration and management may largely account for the
negative impact of MFBs loans on growth by turning these institutions into conduits for
channeling deposits into non-bankable business proposals.
It was further observed that lagged values of GDP significantly promote output growth in
the present period. There is also evidence that investment in microfinance bank assets was an
impediment to growth during the period under review, an indication of heavy investments in
unproductive assets. Finally, growth was also shown to be enhanced by the general price
level (measured by the level of inflation).
Based on the above results, we conclude that rural financial intermediation, an essential
component of financial inclusion, is significant for enhanced economic growth. Prudent
allocation and management of MFBs loans and advances as well as asset investments is
strongly advocated.
ACKNOWLEDGEMENT
The authors acknowledge the kind support of Covenant University Ota towards the
publication of this paper.
11. Technological Advances in Microfinance Banks and Economic Growth in Nigeria
http://www.iaeme.com/IJCIET/index.asp 70 editor@iaeme.com
REFERENCES
[1] Adegbite, E.O. (2015), Financial development and real growth: Deciding the chicken and
determining the egg. An Inaugural Lecture Delivered at the University of Lagos, May 20.
[2] Agba, O.A.M.; Ocheni, S. & Nkpoyen, F. (2014). Microfinance credit scheme and
poverty reduction among low income workers in Nigeria, Journal of Good Governance
and Sustainable Development in Africa, 2(1): 1-13
[3] Agbaeze, E.K. & Onwuka, I.O. (2014), Impact of micro-credit on poverty alleviation in
Nigeria, International Journal of Business and Management Review, 2(1): 27-51
[4] Agbola, F.W.; Acupan, A. & Mahmood, A. (2017). Does microfinance reduce poverty:
New evidence from Northeastern Mindanao, Philippines, Journal of Rural Studies, 50:
159-171
[5] Ahmad, H. & Shah, S.Z.A. (2016), Microfinance and growth of MSMEs: The moderating
role of entrepreneurial thrust, European Journal of Business and Management, 8(28): 46-
54
[6] Appah, E.; John, S.M. & Soreh, W. (2012). An analysis of microfinance and poverty
reduction in Bayelsa State of Nigeria, Kuwait Chapter of Arabian Journal of Business
and Management Review, 1(7): 38-57
[7] Ayodele, A.E. & Arogundade, K. (2014), The impact of microfinance on economic
growth in Nigeria, Journal of Emerging Trends in Economics and Management Sciences,
5(5):397-405
[8] Babajide, A. (2012). Effects of microfinance on micro and small enterprises (MSEs)
growth in Nigeria, Asian Economic and Financial Review, 2(4): 1-16
[9] Bagehot, W. (1873). Lombard Street, Homewood, IL: Richard D. Irwin
[10] Central Bank of Nigeria (2011), Microfinance Policy Framework for Nigeria (Revised
Edition): Abuja- Nigeria: Central Bank of Nigeria
[11] Chavan, P. & Ramakumar, R. (2002). Micro-credit and rural poverty: An analysis and
empirical evidence, Economic and Political Weekly, 37(10): 955-965. Retrieved,
http://www.jstor.org/stable/4411845, 12th
September, 2018
[12] Chowdhury, M.J.A.; Gosh, D. & Wright, R.E. (2002), The impact of micro-credit on
poverty: Evidence from Bangladesh, Retrieved from: http:// www. microfinancegateway.
org/sites/default/files/mfg-en- paper-impact-of-microcredit-on-poverty-evidence-from-
bangladesh-may-2002.pdf , 14th
Sept., 2018
[13] Durrani, M.K.K.; Usman, A; Malik, M. & Ahmad, S. (2011). Role of microfinance in
reducing poverty: A look at social and economic factors, International Journal of
Business and Social Science, 2(21): 138-144
[14] Donou-Adonsou, F. & Sylwester, K. (2017). Growth effect of banks and microfinance:
Evidence from developing countries, The Quarterly Review of Economics and Finance,
64: 44-56
[15] Foster, J., Greer, J., Thorbecke, E. (1984), A class of decomposable poverty measures.
Econometrica, 52, 761–776
[16] George, B. (2010). When small is big: Micro-credit and economic development,
Technology Innovation Management Review, Retrieved from: http:/ /timreview.ca /article/
392, 20th
September, 2018
[17] Gurley, J. & Shaw, E. (1955). Financial aspects of economic development, American
Economic Review, 55(4): 515-538
[18] Haque, E.; Rahman, M. & Awal, J. (2016), Socio-economic impacts of micro-credit on
rural areas in Bangladesh: An econometric analysis, European Journal of Business and
Social Sciences, 5(1):40-46
12. Lawrence Uchenna OKOYE, Alexander Ehimare OMANKHANLEN, Ado AHMED and
Amanosi OJO
http://www.iaeme.com/IJCIET/index.asp 71 editor@iaeme.com
[19] Kandemir, O. & Aktas, Y. (2011). Importance of micro-credit in fight against poverty in
Turkey, International Journal of Economics and Finance Studies, 3(2): 253-262
[20] Mckinnon, R. (1973). Money and capital in economic development, Washington DC:
Brooking’s Institution
[21] Murad, B.A. & Idewele, I.E.O. (2017). The impact of microfinance institution in
economic growth of a country: Nigeria in focus, International Journal of Development
and Management Review, 12(1):1-17
[22] Musomandera, L.; Shukla, J. & Luvanda, A. (2015). Microfinance and business growth in
women small and medium enterprises in Kicukiro district, Rwanda, European Journal of
Accounting Auditing and Finance Research, 3(11): 26-39
[23] Nwele, J.O.; Ogbonna, I.C. & Uduimo, A.A. (2014). Impact of microfinance lending on
economic growth of third world nations: Study of Nigeria, International Journal of
Business, Economics and Management, 1(8): 201-215
[24] Okafor, F.O. (2000). Micro-credit: An instrument for economic growth and balanced
development, African Banking and Finance Review,1(1): 31-42
[25] Okafor, F.O. (2011). Fifty years of banking sector reforms in Nigeria (1960-2010): Past
lessons –future imperatives, Enugu-Nigeria: Ezu Books Limited
[26] Okoye, L.U,; Erin, O.A.; Ado, A.; & Areghan, I. (2017), Corporate governance and
financial sustainability of microfinance institutions in Nigeria, Proceedings of the 29th
International Business Information Management (IBIMA) Conference, Vienna-Austria,
May 3-4: 4035-4045.
[27] Okoye, L.U.; Omankhanlen, A.E.; Okoh, J.I. & Isibor, A.A. (2018), Technology-based
financial services delivery and customer satisfaction: A study of the Nigerian banking
sector, International Journal of Civil Engineering and Technology, 9(13), 214-223
[28] Okoye, L.U.; Adetiloye, K.A.; Erin, O. & Modebe, N.J. (2016), Financial inclusion: A
panacea for balanced economic development, Proceedings of the 28th
International
Business Information Management Association (IBIMA), ISBN: 978-0-9860419-8-3, 9-
10 November, 2016, Seville, Spain, 4384-4394
[29] Onaolapo, A. (2015). Effects of financial inclusion on the economic growth of Nigeria
(1982-2012), International Journal of Business and Management Review, 3(8): 11-28
[30] Onwumere, J.U.J.; Ibe, I.G. & Ugbam, O.C. (2012). The impact of micro-credit on
poverty alleviation and human capital development: Evidence from Nigeria, European
Journal of Social Sciences, 28(3): 416-423
[31] Schumpeter, J.A. (1912). The theory of economic development, Cambridge, MA: Harvard
University Press
[32] Tripathi, V.K.. & Badugu, D. (2015). Effect of e-microfinance on economic growth in
India, International Journal of African and Asian Studies, 15: 55-60