IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 5 2024
DOI: 10.56201/ijbfr.v10.no5.2024.pg92.112

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Effect of Thrift & Credit Society and Business Growth of Microfinance Banks in Enugu Metropolis, Enugu State, Nigeria

Prof Ezeike-Obuna Miriam Ekwutosi, Prof Prince Adonai Okonkwo, Prof. N. M. Ile

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Abstract

This study investigates the effect of Thrift and Credit Societies (TCS) on the business growth of microfinance banks within Enugu Metropolis, Enugu State, Nigeria. The research aims to evaluate how TCS membership influences the customer base growth of microfinance institutions and to assess the relationship between daily contributions by TCS members and the financial mobilization of these banks. Using a quantitative approach, the study analyzed data with statistical tools, revealing that TCS members’ accounts significantly impact the growth of the customer base for microfinance banks (R² = 0.942, t = 31.040, p < 0.05). Additionally, a positive correlation was found between TCS daily contributions and the financial mobilization of microfinance banks (r = 0.815, p < 0.05). These findings suggest that TCS play a crucial role in the financial ecosystem by enhancing customer base growth and contributing to the financial resources of microfinance banks. The study provides insights into how microfinance institutions can leverage TCS memberships and contributions to bolster their growth and financial stability.

keywords:

Thrift and Credit Societies (TCS), Microfinance Banks, Business Growth, Customer Base

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