URBAN ENVIRONMENT AND ITS IMPACT ON BANKING ACTIVITIES IN THE LIMBE MUNICIPALITY

ABSTRACT

     This paper examines the development of Limbe and how banking activities has contributed to that development. It examines theories related to location of Banking activities in a town and how it leads to development such as the Hoyt sector model . The work  provided a conceptualized table of the main concept of the work such as banks, banking activities, urban environment, and the work was highly descriptive in nature.

     Data for this study was gotten through the primary and secondary data collection methods such as interviews, administering of questionnaires, field observation, pictures, internet, textbooks and articles. The data was analyzed using charts, figures, tablets and Pearson’s chi square. Also, this paper brings out the various ways through which the banking sector assists the people of Limbe and how this contributes to an increase in their livelihood.

     The project provides an innovative approach to involve the state in the location of banks in Limbe. The work brings out how the development of banks is distributed over the Limbe urban space and the people’s opinions on what they think should be done in order to limit any unequal distribution of Banking activities

CHAPTER ONE

GENERAL INTRODUCTION

1.1 INTRODUCTION

     Banks are one of the oldest business in the world and are often the backbone of successful economies. Strong financial institutions are at the forefront of technological advancements and provide the financial plumbing necessary for economies to flourish. Banking has changed significantly since the commodity banks of the past, and modern financial institutions continue to adapt to the most complicated issues. Banking has been around since the first century were wealthy people wanted a safe place to store their money. Ancient empires also needed a functional financial system to facilitate trade, distribute wealth and collect taxes. Banks were to play a,major role in that just as they did today. This banking activities have greatly influenced the development of the Limbe urban space.

 1.2 BACKGROUND OF STUDY.

     Before the time of currencies, banking was done by trading grain and other necessities. Farmers could deposit grain at a grain bank and withdraw periodically to provide a constant source of food while their next croup was growing. Grain banks were developed first in the fertile crescent by the Babylonians in Mesopotamia, but they were later perfected by the ancient Egyptians. Egyptians, Historians believe that the grain banking system in Egypt was so advanced that it was like morden day banking systems in terms of transaction volume and networked banks.

     The shift from a reliance on hunting and gathering foods to ragricultural practices, resulted in increased stability of economic relations. Ancient types of money know as grain-money and food cattle-money were used as two of the earliest commodities for purpose of banking. The problem with commodity based banking system was the logistics of handling all the grain, food and livestocks. Therefore as civilization spread across the world, new commodities became the forcus of trade around the world.

     Banking began when empires needed a way to pay for foreign goods and services with something that could be exchanged easily. Coins of varying sizes and metals eventually replaced fragile, impermanent paper bills. The first civilization in the world that was believed to develop metal coins as currency were the lydians around 700BC. At the time, precious metal like silver, bronze, and gold were already been actively traded, so metal coins were the natural solutions to ancient leaders’ trade issue. For many centuries, metal coins dominated currencies.

     Coins, however, needed to be kept in a safe place, and ancient homes did not have still safes. Wealthy periodically in Rome stored their coins and jewels in the basement of temples. They were given a sense of security by the presence of priests or temple workers, who were assured to be devout and honest, and armed guards. Historical records from Greece, Rome, Egypt and Babylon suggests that temples loaned money in addition to keeping it safe. The fact that temples often functioned as the financial centers of their cities is a major reason why they were ransacked during wars. Coins could be exchanged more easily than other commodities, so the class of wealthy merchants took to lending coins with interest to people in need of them. Temples typically handled large loans, including those to various sovereigns, while wealthy merchants money lenders handled the rest.

     During this era, banking was often conducted at religious institutions. However during the Roman empire, banking began shifting to private ownership, control more by the common folk. As the Roman empire fell, their banking organizations followed. Banking persisted however, these banks were under state control. It wasn’t until sometimes around the 10th century when the Chinese first introduced paper money. Modern governments preferred having a standardized currency because it was much easier to manage tax collection, and paper currency was less expensive to maintain than metal currency.

     The market-centric approach returned to banking around the time of the American revolution where British economist Adam Smith advocated for a laissez-faire approach to bar. Competition, like that of the Roman should result in the best banking experience for the public. The first morden banks had an average lifespan of around five years because they issued their own bank notes. This meant if that bank became insolvent, customers lost their deposits. After the revolutionary war, the first Secretary of the treasury, Alexander Hamilton, created the first central bank in U.S and a national currency. During this time, banking excelled but lacked proper regulations. Merchants banks, those that handled banking activities for the General public as well as large corporations, gained massive power.

     Banking is often at the forefront of morden technological advancements. For example, ATMs were developed in the 60s to help depositors access their funds after hours. And recently, electronic payments system have revolutionized morden commerce with the help of the internet. In the 60s since the first ATMs were developed, banking technology has flourished. Credit cards and mobile apps have made accessing deposits and making electronic payments instantaneous from anywhere.

     The history of Cameroonian formal banking is very recent in fact it is less than fifty years old and its origins are traced to the later era of colonisation that is during the post second world war, French and English mandate rule in Cameroon. Banks in Cameroon are mostly commercial banks, mainly handling traditional banking functions, lending short term and specialising in short-term self liquidated trade finance. The banking industry in Cameroon is most heavily undercapitalised and if the required provisions were made would reflect huge negative net worth.

     Banking in Cameroon has evolved from the primitive style to modern banking. Cameroon is a member of BEAC (Bank of central African states)  and CEMAC (Central African economic and monetary community).

     There are basically twelve banks operating in Cameroon today and they include:

• Atlantic bank

• Citibank

• Afriland first bank PLC

• Ecobank

• National Financial Credit Bank (NFC Bank)

• Union Bank of Africa UBA

• Union Bank of Cameroon UBC

• Commercial Bank of Cameroon

• Standard chartered bank of Cameroon SCBC

• Societé General des Banque au Cameroon SGBC

• Banque international du Cameroon pour L’epange et le credit BICEC

1.3 STATEMENT OF PROBLEM

     Banks are the key factors of urban development. Where they locate and concentrate, they attract activities. They become central and essential in territorial development and even planning. In Limbe, the urban space where banks are located, witness a great development than other areas. The centrality of banks attract and promote development of their space due to the booming of activities. Therefore, they become growth poles at the detriment of other urban spaces.

1.4 RESEARCH QUESTION

1.4. MAIN QUESTION

      How does the banking activities influence the growth of Limbe urban space?.

1.4.2 SPECIFIC RESEARCH QUESTION

• What is the state of banking activities in Limbe?.

• What role play banks in the development of Limbe urban space?’

1.5 RESEARCH OBJECTIVES

1.5.1 MAIN RESEARCH OBJECTIVES

     To investigate how banking activities influence the growth of Limbe urban space.

1.5.2 SPECIFIC RESEARCH OBJECTIVES

• To evaluate the state of banking activitie in Limbe.
• To establish the role banks play in the development of Limbe urban space.