Contribution of Commercial Banks to the Economic Development of Mogadishu, Somalia

ABSTRACT 

The study aimed at the contribution of commercial banks to the economic development of Mogadishu, Somalia. The objectives of the study were to assess the contribution of commercial banks to the economic development, to identify the challenges faced by contribution of commercial banks to the economic development of Mogadishu and to propose better ways to overcome these barriers faced by commercial banks to the economic development The researcher used the sample size of 100 respondents including, administrators, employees and beneficiaries of these commercial banks. The study was conducted through descriptive research design and used questionnaire as the main tool for collecting data. The findings of the study shows that commercial banks contribute on the economic development by facilitating highly speed of money transfers, building economic structures by providing small scale microfinance institutions ~n Mogadishu and they help the community by providing the savings making them, available to entrepreneurs. Based on the findings, the researcher recommended that commercial banks must devote to operate effective in their community, and also to extend network agents through all the villages and towns in the country. to participate the social responsibility operations by providing fund which could help them to create their own business, lastly the commercial banks must create microfinance institutions in order to enhance small loans to their customers that would like to invest their small and medium sized business (e.g. Farmers and entrepreneurs).

TABLE OF CONTENTS

Chapter Page

One THE PROBLEM AND ITS SCOPE 1

Background of the study 1

Statement of the problem 4

Purpose of the study 4

Research objectives 4

Research questions 5

Scope of the study 5

Significance of the study 6

Operation definitions of key terms 7

Two REVIEW OF RELATED LITERATURE 8

Concepts, ideas, opinions from authors/experts 8

Theoretical Framework 9

Commercial banks and economic development 10

Service of commercial banks 14

Impact of commercial banks to the community 21

Challenges faced by commercial banks 22

The way forward 24

Related Studies 26

Conceptual frame work 29

Three METHEDOLOGY 31

Introduction 31

Research design 31

Research population 31

Sample size 32

Sampling procedure 32

Research instrument 33

Validity and reliability 33

Data gathering procedures 34

Data analysis 34

Ethical considerations 34

Limitation of the study 35

Four PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA 36

Introduction 36

Five SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION 45

Introduction 45

Summary of findings 45

Discussions 46

Conclusions 47

Recommendations 48

Suggestion for further research 49

References 50

Appendixes 54

Appendix I: Transmittal letter 54

Appendix II: Research instrument 55

Appendix III: CVI 60