Authors : F.A. Ajagbe , J.O. Adewoye and J.O. Ajetomobi
Abstract: This study examines the performance of Community Banks in Ogbomoso Area of Oyo State, Nigeria. Sample size of 8 Community Banks were selected using purposive sampling technique and 200 loan beneficiaries were selected using stratified random sampling method with the help of well structured questionnaires and interviewed techniques. Financial ratio technique was used to analysis the compliance ratio. The result of the findings revealed that capital adequacy, liquidity reserve and cash reserve ratios were the significant factors in determining the performance of Community Banks in the study area. Finally, it was discovered that, the capital adequacy computation stood at 48.14% as against 8%, the liquidity reserve was 50.5 and 52.0% as against 30% minimum and 70% maximum respectively, while the cash reserve stood at 41.4% as against 8% showing that, the sampled banks were viable, solvent and their performances were health and sound enough to face future challenges.
F.A. Ajagbe , J.O. Adewoye and J.O. Ajetomobi , 2007. An Evaluation of the Financial Performance of Community Banks in Ogbomoso Area of Oyo State, Nigeria . International Business Management, 1: 65-69.