CHAPTER FIVE: SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1. Introduction
All the previous chapters have been dealing with theoretical
and scientific part of the study mostly looking at different variables and
drawing the relationship between bank loan and the promotion of trade. This
chapter presents the summary of major findings, conclusion and recommendations
provided by the researcher about the assessment of commercial banks in
promoting trade in rural areas and suggestions for further research.
5.2. Summary
The study was carried out in the area covered by the
activities of BPR S.A Kaduha sub-branch in order to assess the contribution of
commercial banks in promoting trade in rural areas. The targeted population
under the study was the selected traders who got the bank loan to finance their
trading activities. Data was collected by the use of questionnaire and
documentary technique. This study is organized in five chapters and sub
chapters as it was seen from the beginning.
Referring to the objectives of the study, the results from
questionnaire and documentary technique were analyzed and proved that there are
trading activities supported by commercial banks in rural areas mainly BPR S.A.
Those activities are trading of agricultural products, industrial products,
food processed products and services.
The study indicated that commercial banks play an important
role in promoting trade in rural areas as confirmed by the respondents
questioned. Banks grant different amount of credit to traders depending on the
nature and the size of trade; this increases their capital and more and better
product become available to the consumers. From the date of the loan
application, the research revealed that banks don't delay their credit
activities; the period of loan granting depends on the customer's will and
rapidity to fulfill the loan requirements. The study also found out that most
of traders finance their activities by small and medium term credit as is was
shown by 83.4% of the respondents. The findings of the research proved that
bank loan is helpful in promoting trade; this was confirmed by all of the
respondents questioned. About the credit services offered by BPR S.A Kaduha
sub-branch, most but not all of the respondents (89.6%) appreciated them.
It was found out that there is performance of trading
activities supported by commercial banks in terms of increasing of capital,
sales volume, cash inflow and stock of products. The government also gets
benefits from taxpayers because when their commercial transactions are financed
by the bank loan their taxable capacity rises; and the government collects
higher amount; this was affirmed by all of the respondents questioned. Also,
there are changes in the areas covered by the commercial activities supported
by banks such as availability of new products, high quality products, more
existing products and new services. 89.6% of the respondents agreed that after
getting the loan, there was expansion and improvement of their business. This
means that the bank loan helps them to develop their activities.
Some neighboring people are recruited by the traders who
expand their activities after they get the bank loan and they increase the
salaries of the existing permanent or temporary workers; this was declared by
85.4% of the respondents questioned. Thus, the study revealed that this has
favorable impact on the employment in the area because there is reduction of
unemployment rate and living conditions of the workers become ameliorated.
During the research, it was found that 89.6% of the
respondents improved their standards of living in terms of health, food,
education and the fundamental equipment have been enhanced after they god bank
support. However, there is a small portion of respondents (10.4%) whose
conditions remained unchanged once they got the loan; this was due to different
factors such as mismanagement, the heavy tax imposed by the authorities and
working conditions.
After recognizing the importance of bank loan in financing
trade projects, 75% of the respondents would request for another credit once
they finish repaying the existing loan in order to enlarge and get better their
activities.
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