The Impact Of Monetary Policy In Nigeria Banking Institution

THE IMPACT OF MONETARY POLICY IN NIGERIA BANKING INSTITUTION

Introduction

To govern and regulate the demand for and supply of money from the public, the public, and the flow of credit in order to achieve preset macroeconomic goals, the monetary authorities, typically the central bank, implement monetary policy.

One of the main responsibilities of the central bank of Nigeria (CBN) is to implement monetary policy, which is currently considered to be a very important tool for managing the Nigerian economy. By following the procedures outlined in Section 8 Subsections 1 and 2 of the Central Bank of Nigeria Decree of 24 1991, the CBN fulfills this duty on behalf of the federal government of Nigeria. The Governor is required to inform the president of the Bank’s monetary and banking policy as it is being pursued or intended to be pursued. After careful study, the president may instruct the bank in writing as to the monetary and banking policy being followed or intended by the board, which shall immediately take all necessary or expedient steps to give effect thereto.

Background of the Study, paragraph 1.1

The federal government has noted that the unpredictable exchange rate has harmed the economy. is struggling and has made the decision to boost the balance of payments while maintaining a stable domestic pricing level.

1.2 The Study’s Statement

This paper will look into the effects of monetary policy on Nigerian banking institutions. The comprehensive distribution of this monetary strategy, including to local communities, would be made possible through the analysis of its effects on Nigerian banking institutions. Additionally, it will make it possible to identify any potential issues that may arise during the implementation of monetary policy. It will also be very helpful. a means of teaching individuals how to manage their finances.

1.3 The Study’s Objectives

Finding out the high rate of employment is the goal of this investigation.

1.4 Research Question

The following query will serve as the work’s guiding question.

How does the C.B.N. carry out its monetary policy?

How the C.B.N. utilizes monetary policy to manage the state’s price stability.

How does changing monetary policy affect the rise in economic productivity?

1.5 Research Hypothesis

The following theory will be examined for the purposes of the task.

If financial influence on the banking institution, null hypothesis

An alternative is if the banking institution is not impacted by monetary policy.

1.6 Importance Of The Research

The following are some noteworthy aspects of this project proposal:

a prospective researcher who is interested in learning more about how monetary policy affects the banking industry.

The study will be useful to bank employees since it will inform them of the effects of monetary policy on the banking industry.

On how to increase the effectiveness of monetary policy in financial institutions, to the Government.

Limits And Delimitations

This investigation will focus on government, banks, business, and academia.

1.8 Restriction

It is impossible to conduct a study of this kind without encountering obstacles. The time constraint is a significant restriction. The work on this research proposal, the examination, and the research were completed in about one week.

Finance is another barrier because such research requires adequate search (raw materials).

Lastly, it was challenging to find pertinent data for the study.

1.9 Definition of Key Phrases

According to Harry (1962), monetary policy is “a policy employing central banks control of the money supply as a tool of achieving the objectives of general economic policy.”

The mix of measures intended to control the value, supply, and cost of money in an economy in accordance with the level of economic activity is referred to as monetary policy, according to C.B.N. Brief (1999).

According to Barbara (2006), changes in the money supply or other economic variables are one of the primary policy tools used to affect interest rates, inflation, and the availability of credit.

According to Falepan (1978), monetary policy involves the monetary authorities’ discretionary control over the money supply in order to accomplish declared or intended economic goals.