Impact Of Quantitative Tools Of Monetary Policy On The Performance Of Deposit Of Commercial Banks In Nigeria
This research work will be based on the impact of quantitative tools of policies on the performance of deposit of commercial banks in Nigeria, first bank of Nigeria plc and first inland bank plc.
In trying to steer the economy towards the desired direction, monetary policy among other economic policies is employed by the government authorities or government. Banks are the medium through which the government implements monetary policies and during the process of implementation banks are influenced.
This research will sougth to find if monetary policy actually influences the performance of commercial banks over the study period of time and to what extent it actually did, if it did.
Hence, the research will also seek to discover if monetary policy influenced the loans and advances including the profit of first banks of Nigeria plc and first inland bank plc. Uses of simple percentage for analysis of data and chi-square for hypothesis will be use.
The monetary policy instrument that I will like to use are interest rate, cash reserve ratio, minimum rediscount rate, liquidity ratio and foreign exchange rate.
In conclusion, monetary policy has impacted positively in the performance of deposit of commercial banks in stabilizing economy.
1.1 General Overview Of The Study
Government polices are used to pursue development objectives of government that bothers on meeting the welfare of the citizens, they could be socially, politically, economically, religious wise, environmentally population and so on. These policies are used to pursue these goals through the use of economic policy. They are open market operation (OMO), moral suasion, special deposit, credit control and discount rate. The banks are one of the financial institutions that formulate the policy objectives and achievement of these goals.
This research involves the case study, first bank of Nigerian plc and first inland bank plc.
First bank of Nigerian plc was incorporated as a limited liability company on March 31, 1894 with head office in Liverpool by Sir Alfred Jones, a shipping magnate. It started business in the office of elder Dempster and company in Lagos under the corporate name of the bank of British West African (BBWA) with a paid up capital of 12000 pounds sterling, after absorbing it predecessor, the African banking corporation, which was established earlier in 1892. In the early years of operation the bank has an impressive growth. The changing of the bank name occurs in 1979 and 1991 to first bank of Nigeria plc.
First inland bank was incorporated as inland bank (Nigeria) plc on 20th April 1988 as a private limited liability company. It commenced business operation on October 1988 and was converted to a public limited liability company in June 1992.
2005 the bank went into a merger arrangement with former fist Atlantic bank plc. IMB international bank plc and NUB international bank limited to form first inland bank plc. The shares of the new bank, first inland bank plc are quoted on Nigeria stock exchange. The consolidated bank, first inland bank plc.
1.2 Statements Of Problems
- The under-developed nature of the Nigeria financial market.
- There is very much presented in Nigeria whereby expected revenue fall below expenditure. This occurrence leads to direct injection to aggregate demand and increase pressure on general price level.
- The issue of non bank financial institution (NBFI), which are graving in numbers and operations. They adopt deposit but up till now, they are not under the central bank of Nigeria CBN.
- The delay in the conduct of monetary policy in Nigeria.
- The delay in releasing the federal government annual budget, which cause economic units to suspend their activities.
1.3 Objective Of The Study
- The primary objective of this research is to meet higher national diploma in banking and finance in federal polytechnic nekede Owerri.
- To determine if monetary policy has had any influence on the profit of the first bank of Nigeria plc and also on its loan deposit and advances, over the study period.
- Finally to make necessary recommendations that would improve monetary policy in Nigeria.
1.4 Statement Of Hypothesis
This section would outline some hypotheses of this research project.
- Hi: Monetary policy tools have an influence on the profit of commercial banks in Nigeria.
- Ho: There is significant relationship between monetary policy tools and profit deposit and loans of commercial banks in Nigeria.
1.5 Significance Of The Study
- Student would use it for reference purpose when conducting their researche.
- Practicing bankers would find relevance in this study, this is because, it will help to find out which monetary policy instruments influence bank performance of the most and to them in important matters of decision.
- It is also vital to central bank and other monetary authorities. Monetary authorities have this work of keeping economic indicators within reasonable limits; this research would definitely be of assistance to the monetary authorities in achieving this aim because it will provide an insight as to which tool would be most appropriate for influencing the economy.
- An ultimate aim of this study is to bring about stability in the banking system and hence the economy as a whole and this would be of significance to the citizens of the economy.
1.6 Scope Of The Study
As Anyanwu (2000), specified out “A research is not expected to cover a discipline in the cause of this study. In line with this statement this project work would not cover every thing on this study ,it will significantly determine the reliability of its findings. Hence, only two performance indicator would be analysed.
Despite the fact that there are others like “Net income before taxes total assets deposit and income”
The monetary policy tools that would be involved in this study are open market operation (OMO), required reserve ratio (RRR) the cash reserve ratio ( CRR) interest rate policy (IRP), and exchange rate policy (ERP).
The following monetary policy instrument will be excluded such as discount rate policy (DRP) and moral suasion.
It is an experimental study, it is not a full experiment since I would not require a pre-test and post-test analysis neither will it require an experiment and control group analysis.
It is a case study research and will therefore be particular about banks.
First bank of Nigeria plc and first inland bank plc with there size and spread of operations is a representative case study. It has two branches in Owerri, that is first bank and first inland bank plc has two branches in Owerri, and has other branches in the nation.
1.7 Limitation Of The Study
In conducting a research work of this nature, certain restrictions are bound to affect the study. These include the following: money, time and effort.
Money being a scarce commodity, a student will not have enough money to meet up all there financial obligations by travelling to many organization which is a pre-requisite for a research project. As a result of this defect, this study will centre on the impact of quantitative tools on the performance of deposit of commercial banks in Nigeria with reference to first bank of Nigeria plc and first inland bank plc.
A research work of this nature can not be accomplished within a short period of time. It requires time if one actually wants to write exhaustively on the topic.
Also some employees of the bank and to who questions were asked declined interest should every attempt to persuade due to their own time schedule being a limitation to a project.
1.8 Definition Of Terms
This is the period between the conception of an idea and the time of implementation.
This is the conglomeration of market institutions, regulatory authorities, intermediates and the dealers in the economy.
The upward or downward i.e. increase in the rate of inflation.
This is a rate at which banks make advance to their customers.
This is summation or total amount or stock of many in circulation.
This is the process of insuring that firm activities confirm to as planed in ensuring that objectives are achieved.
These are goals on enterprise seek to achieve by its existence and operation.
These are instrument used for a particular kind of work.
Open Market Operation:
This is defined as the selling or buying of government securities in the financial markets by the central bank.
This can be defined as the major economic stabilization weapon which involves measure designed to regulate the volume, cost availability and direction of money and credit in the economy.
This is defined as a case where the interest rate falls so low that individuals and business wish to hold any new money created in the banking system as speculative balance.
This is an educated guess which the researcher made ahead of time which will be put to test for acceptances or rejection.
These are securities specifically issued by the central bank at time it deems fit for the purpose of moping up excess liquidity in the banking system.
This is a price of capital to the borrower and a return on capital to the saver or lender.
This is also known as minimum rediscount rate or bank rate is a rate at which central bank offer financial assistance to financial institutions through loans or discounting bills.
This is an account in which a person keeps a specific sum of money for an agreed period of time.
This is a type of budget prepared by an organization based on the availability of cash.
This is a financial statement that shows the activities of an organization within a specified period.
These are money that are not cash or paper-money but are also used for transaction purpose and also regarded as money.
Impact Of Quantitative Tools Of Monetary Policy On The Performance Of Deposit Of Commercial Banks In Nigeria
The complete material will be sent to you in just 2 steps.
Quick & Simple…
Make payment of ₦3,000: through USSD Transfer, Bank Mobile App, ATM Transfer, or POS Transfer to:
|Account No.: 0811003731|
|Name: Samphina Academy|
|Account Type: Current|
Or Click Here to pay with Debit Card
|FOR CLIENTS OUTSIDE NIGERIA:|
|Click Here to pay with Debit Card ($15)|
|GHANA – Make Payment of 60 GHS to MTN MoMo, 0553978005, Douglas Osabutey|
Send the following details through Text Message or WhatsApp Messenger | +234-8143831497
- Payment Details
- Email Address
- Impact Of Quantitative Tools Of Monetary Policy On The Performance Of Deposit Of Commercial Banks In Nigeria
The complete material will be sent to your email address after receiving your payment information | T & C Apply
You may also like:
This research material “Impact Of Quantitative Tools Of Monetary Policy On The Performance Of Deposit Of Commercial Banks In Nigeria” is for research purposes and should be used as a guide in developing your research project / seminar work. For no reason should you copy word for word (verbatim) as samphina.com.ng will not be liable for any who copied the material.
The aim of providing this material is to reduce the stress of moving from one school library to another all in the name of searching for research materials. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works. According to Austin Kleon “All creative work builds on what came before”.
samphina.com.ng is only providing this material “Impact Of Quantitative Tools Of Monetary Policy On The Performance Of Deposit Of Commercial Banks In Nigeria” as a reference for your research. The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own research. Use it as a guidance purpose only.
How to defend your research work
This is a general guide on how to defend your research work:
1. Prepare For Questions:
If you are preparing for questions that may be asked during your defense, then your answers will flow smoothly and effectively. This will prove your knowledge on the subject e.g “Impact Of Quantitative Tools Of Monetary Policy On The Performance Of Deposit Of Commercial Banks In Nigeria“, and strengthening your argument. Ask friends and family, read your work for them to listen to your presentation, and write down questions. You may be lucky the panel will ask you those you have already prepared on.
2. Strong Summary:
Summarizing your chapters will help keep your audience focused because it is easy for a mind to drift, so providing summaries will ensure your panel will follow along, even if they lose focus for a brief moment. Visual aides, such as graphs and power-point presentations can be very helpful. If you are going to use these, make sure you will practice your presentation with them.
3. Be Confident in Your Research Work:
Not knowing your topic “Impact Of Quantitative Tools Of Monetary Policy On The Performance Of Deposit Of Commercial Banks In Nigeria” inside out will cause you to struggle and ultimately fail with your defense. You need to know the subject from every angle to ensure you are fully prepared for any question that may come your way.
Reinforce your findings to conclude your defense. The finale of your presentation should focus on proving the work that has been done. You may need to recap on what has changed and remained unchanged, if is necessary.
5 . Listen:
Before you get defensive or recite a particular answer, make sure you truly understand the question being asked. Being a good listener is an important quality, because providing an inaccurate or off-topic answer will also weaken the validity of your paper.