Monetary Policy and Financial Performance of Nigerian Deposit Money Banks

Abstract

Article History

Motion Control of Small Autonomous Underwater Vehicle in Presence of Parameters Uncertainties

“…Monetarists believe that the apex bank can have an impact on the actual part of the economic system by the operations of O.M.O. [4].…”

“…The outcomes demonstrated an affirmative connection between the profit of banks and money related policies. In the assessment of the Apex Bank of Nigeria's (CBN) monetary policy instruments before and during the bank recapitalization process (2000-2016) and assessing the impact of these policy methods on the financial results of Nigerian commercial banks (DMBs) using the Autoregressive Lag Model (ADL) to analyse data sourced through the Statistical report of the CBN, 2016, [4] proved that the CBN's monetary policies had a huge influence on the short-term success of DMBs, but had a negligible long-run effect. Leveraging on individual-level data of home-covered Securities (MBS), and analyzing quantitatively how unorthodox monetary stance affects MBS spreads.…”

“…[1] Opined that a monetary strategy is a tool which includes an optional exertion by the apex financial authority to regulate the money circulation, bank liquidity, inflation and credit situations to accomplish macroeconomic goals. Under standard times, apex banks modify the pace of monetary policy to be injected to the economy through different mechanisms such as Open Market Operations (OMO), money reserve prerequisites, liquid asset proportion, regulation of financial rate (MPR) and ethical persuasion to accomplish the goals of financial guidelines [4], of which a high level of compliance is expected of the Deposit Money Banks. However, in periods of economic slowdown and financial emergency, the traditional monetary policy (expansionary) often utilized by the central bank tends to be constrained in its value due to the zero base bound short term rate guideline.…”

“…However, in developing countries including Nigeria, the influence of unconventional monetary measures on deposit money banks performance has not been concentrated upon in research. Studies in Nigeria have only considered monetary policy on economic growth and bank performance [4]; [52]; [49]; [55]. Based on this premise, bridging the gap in present literature, by studying the extent to which untraditional monetary stance influence deposit fund banks financial efficiency in this geographical region will aid the monetary authorities, the banking industry and other financial stakeholders in developing nations and the world to implement hedging strategies to cushion against the nontraditional monetary policy impact.The subsequent part of this paper consists of the theoretical underpinning, conceptual and empirical discuss of prior studies, and the next part will deal with the methodology followed by the interpretation of results and then summary, conclusion and recommendation respectively.…”

“…Monetarist theory embraced the equation of trade by Fisher to represent their hypothesis. The import of this condition is that if the economic fund supply increases so will the value level [4]. The fisher's condition expresses that: MV = PQ Where: M = cash supply in the economy; V = speed of circulation; P = value level in the economy; and Q = output created by the economy.…”