The Effect of Monetary Policy on the Nigerian Deposit Money Bank System

Alex Ehimare Omankhanlen
Additional contact information
Alex Ehimare Omankhanlen: Department of Banking and Finance, Covenant University, Ota, Ogun State, Nigeria

International Journal of Sustainable Economies Management (IJSEM), 2014, vol. 3, issue 1, 39-52

Abstract: This study investigates the effect of monetary policy on the Nigerian Deposit Money Bank (DMB) System. The Nigerian banking system is currently under-going a series of reforms in order to enhance its competitiveness and efficiency. The Ordinary Least Square (OLS) method is used to examine the effect of monetary policy on the Nigerian Deposit Money Bank System, using such variables as total loans and advances (TLA) as dependent variable and liquidity ratio (LR),cash reserve ratio (CRR), monetary policy rate (MPR), and average exchange rate (AER) as independent variables. The result of the findings shows that monetary policy rate reveal the most significant effect on commercial banks loans and advances during the period under study. The study thus recommends, among others, that the regulatory authority Central Bank of Nigeria should create credit procedures, policies and analytical capabilities which should be entrenched in the credit management of DMB's operations.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... 018/ijsem.2014010104 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igg:jsem00:v:3:y:2014:i:1:p:39-52

Access Statistics for this article

International Journal of Sustainable Economies Management (IJSEM) is currently edited by Dorel Dusmanescu

More articles in International Journal of Sustainable Economies Management (IJSEM) from IGI Global
Bibliographic data for series maintained by Journal Editor ().