Section 1: Establishment of a Community Bank, etc

(1) A community or group of communities may establish a Community Bank (in this Act referred to as a "bank") for the purpose of-
(a) promoting rural development through the provision of finance and banking services;
(b) enhancing the rapid development of productive activities, especially in the rural areas; and
(c) improving the economic status of small-scale producers, both in the rural and urban areas.
(2) A community or group of communities desiring to establish a bank shall apply, in writing through the National Board for Community Banks, to the Governor of the Central Bank of Nigeria (in this Act referred to as "the Governor") for the grant of a licence.
(3)
An application for a licence under subsection (2) of this section shall be accompanied with the following, that is-
(a) a draft copy of the memorandum and articles of association of the proposed bank;
(b) documentary evidence that-
(i) the applicants are able to raise the minimum equity share capital;
(ii) the premises sought to be used are constructed and equipped to such a standard as the National Board for Community Banks may prescribe;
(c) a list of the shareholders, directors and principal officers of the bank and their particulars;
(d) the prescribed application fees; and
(e) such other information and documents as the National Board for Community Banks and the Central Bank of Nigeria may, from time to time, specify.
(4) Where an application is made through the National Board for Community Banks in accordance with the provisions of subsection (2) of this section and is accompanied by such information and documents as are required under that subsection, the National Board for Community Banks shall, if satisfied-
(a) as to the adequacy and suitability of the premises sought to be used; and
(b)
that the applicants are-
(i) capable of complying with such conditions as may be imposed or attached to the licence;
(ii) in all other respects suitable persons to be granted a licence,
recommend to the Governor the granting of licence, subject to such conditions as may be imposed or as may be attached thereto.