THE IMPACT OF QUANTITATIVE TOOLS OF MONETARY POLICY ON THE PERFORMANCE OF DEPOSIT OF COMMERCIAL BANKS IN NIGERIA (A CASE STUDY OF FIRST BANK OF NIGERIA PLC)
TABLE OF CONTENTS
Abstract
CHAPTER ONE
- Introduction
1.1 Background of the study
1.2 Statement of problems
1.3 Objective of the study
1.4 Research Question
1.5 Research hypotheses
1.6 Significance of the study
1.7 Scope of the study
1.8 Limitation of the study –
1.9 Definition of terms
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Objectives of monetary policy
2.2 Impact of monetary policy on the operation of firs bank Nigeria plc.
2.3 Operational balance sheet performance of first
2.4 Financial sector performance using balance sheet comparism
2.5 First bank Nigeria plc and policy on small and medium scale investment scheme
2.6 Challenges facing monetary policy effectiveness
2.7 Monetary and credit policy measures in 2005/2006 objectives and strategy policy
2.8 Relevant models or issue to monetary policy
CHAPTER THREE
Research Methodology
3.1 Research design
3.2 Population of the study
3.3 Sample / sampling techniques
3.4 Method of data collection –
3.5 Method data analysis – –
CHAPTER FOUR
4.0 PRESENTATION AND ANALYSIS OF DATA –
4.1 Data presentation – – – – –
Data analysis –
4.2 Test of hypothesis – –
CHAPTER FIVE
5.0 Summary, Conclusion And Recommendation –
5.1 Summary of the findings –
5.2 Recommendations –
5.3 Conclusion –
References – –
Journals –
Appendix I
Appendix II —
ABSTRACT
Monetary policy is measures designed by the central authority to regulate the quality of money in circulation. This study is on the effect of monetary policy on the banking industry. The objective of the study is to determine the effect of monetary policy on the commercial banks and its effectiveness especially in controlling the quality of money in circulation. In this work the research collected data through the use of questionnaire. The questionnaires were administered personally, by the researcher, which gave him an opportunity to analyze that policy is a potent tool and a measure in countering the operations of commercial banks. Based on the findings, the researcher recommends among other the regulatory body should make sure that the banks are there to formulate monetary policies, so that sanity will be maintained in the banking industry and confidence restored.
CHAPTER ONE
- Introduction
1.1 Background of the Study
Government policies are used to pursue development objective 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 credit control and discount rate. The banks are one of the financial institutes that formulate the policy objectives and achievement of these goals. This research involves the case study of First Bank Nigerian Plc.
First Bank Nigerian Plc was incorporated as a limited liability company on March 31, 1894 with the head office in Liverpool by Sir Alfred Jones a shipping magnate. It started in the office of Elder Dempster and company in Lagos under thee cooperate name of Bank of British West African (BBWA) with a rapid up capital of 12,000 pounds sterling. After absorbing it predecessor the African banking cooperation, which was established earlier in 1892. In the early year of operation the bank has an impressive growth. The changing of the banks name occurs in 1979 abd 1991 to First Bank Nigerian Plc. 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 Atlantic Bank Plc, IMB international Bank Plc. The sharing of the new banks are quoted on Nigeria stock exchange consolidated.
1.2 Statement of problems
- The under-developed nature of the Nigeria financial market.
- There is very much presented in Nigeria where by expected revenue fall below expenditure. This occurrence leads to direct injection to aggregate demand and increase pressure price level.
- The issue of non bank financial institution (NBF) which are ruing in numbers and operations. They adopt deposit but up till now, they are under the central banks of Nigeria (CBN).
- There is delay in the conduct of monetary policy in Nigeria.
- There is delay in releasing the reserve government annual budget which causes economic units to suspend their activities.
1.3 Objective of the study
- To determine monetary policy has any influence on the profit of the banks or Nigeria Plc and also on its, loan deposit and affiances.
- Finally to make necessary recommendations that would improve monetary policy in Nigeria.
- 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.
1.4 Research Question
- Does monetary policy influence the Nigeria Economy?
- Does their impact effectively contribute to the small and medium industries in Nigeria?
3 Does the impact of monetary policy influence the profit deposit as well as loan and advances of commercial bank?
- Does monetary policy influence on the performance of commercial banks in Nigerian
1.5 Research hypotheses
- Ho: Monetary policies have influence on profit deposit of commercial banks in Nigeria.
Hi: Monetary policies do not have influence on profit deposit of commercial banks in Nigeria.
Ho: There is significant relationship between monetary policy and profit of commercial banks in Nigeria
Hi There is no significant relationship between monetary policy and profit of commercial banks in Nigeria
1.6 Significance of the study
- Student would use it for reference purpose when conducting their researcher.
- Practicing bankers would find relevance in this study, theists because it will help to fine out which monetary policy instruments influence bank performance of the most and to them in important matters of decision.
- 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.
1.7 Scope of the study
As Anyanwu (2000) especilied out a research is not expected to cover a discipline in the cause of the study in line with this statement of this project work and would not cover every thing on this study, it will significant determine the reliability of its findings. Hence only two performance indicator would be analyzed. Despite the fact that there are other like “nets” income before taxes total assets deposit and in come.
The monetary policy tools that would be involved in this study are open market operation (OMO) required ration (RRR) the cash reserve ration (RR) interest ratio policy (IRP) and exchange rate policy (ERP), the following policy instrument will be excluded such as discount rate Policy (DRP) and moral suasion.
