The Impact Of Monetary Policy On Bank Performance; 1980 -2006

ABSTRACT 

The study investigated the impact of monetary policy on bank performance, covering the period, 1980-2006. While bank performance was measured through the total external assets of all commercial banks in Nigeria, the cash reserve ratio, liquidity ratio, interest rate, minimum rediscount   rate   and   treasury bills  rate,  represented instruments of monetary policy.  Adopting the multiple regression model, the study confirmed the existence of a significant relationship between monetary policy instruments  and   bank   external   assets.  Also   revealed,   is  the existence of a significant impact of two monetary policy instruments (cash  reserve, ratio  and   minimum   rediscount rate)   on   net  external assets of commercial banks while treasury bills rate, liquidity ratio and interest rate , all failed to contribute significantly to the external" assets of banks.  On     the   strength   of these findings, some of the major recommendations are that me monetary authorities need to pay more attention   to   the   use of, especially   the   cash   reserve   ratio   and minimum rediscount rate .as measures towards helping both the banks and the economy to grow. Similarly, treasury bill rate, liquidity ratio and the interest rate, all need special attention of the CBN for L bank performance to improve. 

KEYWORDS: Monetary Policy, Bank Performance , Cash Reserve Ratio, Minimum Rediscount Rate, Interest Rate , Treasury Bills Rate f Liquidity Ratio , Total Foreign Assets r Monetary Authorities, Economic Development. 

 

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APA

OKPANI, C (2021). The Impact Of Monetary Policy On Bank Performance; 1980 -2006. Afribary. Retrieved from https://afribary.com/works/the-impact-of-monetary-policy-on-bank-performance-1980-2006

MLA 8th

OKPANI, CHUKWU "The Impact Of Monetary Policy On Bank Performance; 1980 -2006" Afribary. Afribary, 15 Apr. 2021, https://afribary.com/works/the-impact-of-monetary-policy-on-bank-performance-1980-2006. Accessed 22 Dec. 2024.

MLA7

OKPANI, CHUKWU . "The Impact Of Monetary Policy On Bank Performance; 1980 -2006". Afribary, Afribary, 15 Apr. 2021. Web. 22 Dec. 2024. < https://afribary.com/works/the-impact-of-monetary-policy-on-bank-performance-1980-2006 >.

Chicago

OKPANI, CHUKWU . "The Impact Of Monetary Policy On Bank Performance; 1980 -2006" Afribary (2021). Accessed December 22, 2024. https://afribary.com/works/the-impact-of-monetary-policy-on-bank-performance-1980-2006