Access to Financial Services Via Rural and Community Banks and Poverty Reduction in Rural Households in Ghana

Abstract

This paper examines whether financial services provided by Rural and Community Banks to rural households in Ghana has a significant impact on the wellbeing of the households. The analysis utilizes data from the Round 6 of the Ghana Living Standard Survey (GLSS) and it employs several econometric techniques. We find that access to financial services via Rural and Community Banks exerts a positive and significant influence on the standard of living of rural households, suggesting that Rural and Community Banks can play a significant role in reducing poverty rates in rural households in Ghana.