Impact of Monetary Policy Implementation on the Performance of Deposit Money Banks in Nigeria
Author: ADEYANJU, Olanrewaju David
Department of Finance, Redeemer’s University, P. O Box 230, Ede, Osun State, Nigeria
This study investigates the effect of monetary policy implementation on Deposit Money banks’ performance in Nigeria. Secondary data was used, mainly from the CBN statistical bulletin and the financial statements of the selected banks for a period of 16 years, using the OLS regression techniques. The study discovered that exchange rate, interest rate, are all negatively related with return on equity while monetary policy rate is positively related and money supply is found to be statistically insignificant. The study concludes that monetary policy plays a vital role in determining the volume of money supply and bank’s performance in Nigeria. It is recommended that government and the monetary authorities should strive to create a conducive environment for banking sectors to grow in the country by packaging appropriate monetary policies that would guarantee and enhance development and growth.