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APPRAISAL OF MONETARY POLICY IMPLEMENTATION IN NIGERIAN BANKS

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TITLE PAGE

APPRAISAL OF MONETARY POLICY IMPLEMENTATION IN NIGERIAN BANKS

BY

---
EE/H2013/01430
DEPARTMENT OF ----
SCHOOL OF ---
INSTITUTE OF ---

DECEMBER,2018



APPROVAL PAGE

This is to certify that the research work, "appraisal of monetary policy implementation in nigerian banks" by ---, Reg. No. EE/H2007/01430 submitted in partial fulfillment of the requirement award of a Higher National Diploma on --- has been approved.

By
---                                                     . ---
Supervisor                                                  Head of Department.
Signature……………….                           Signature……………….        

……………………………….
---
External Invigilator



DEDICATION
This project is dedicated to Almighty God for his protection, kindness, strength over my life throughout the period and also to my --- for his financial support and moral care towards me.Also to my mentor --- for her academic advice she often gives to me. May Almighty God shield them from the peril of this world and bless their entire endeavour Amen.



ACKNOWLEDGEMENT

The successful completion of this project work could not have been a reality without the encouragement of my --- and other people. My immensely appreciation goes to my humble and able supervisor mr. --- for his kindness in supervising this project.
My warmest gratitude goes to my parents for their moral, spiritual and financial support throughout my study in this institution.
My appreciation goes to some of my lecturers among whom are Mr. ---, and Dr. ---. I also recognize the support of some of the staff of --- among whom are: The General Manager, Deputy General manager, the internal Auditor Mr. --- and the ---. Finally, my appreciation goes to my elder sister ---, my lovely friends mercy ---, ---, --- and many others who were quite helpful.


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ABSTRACT
Monetary policy aims at controlling the supply of money in the economy so as to affect the aggregate level of spending. The Central Bank of Nigeria as the custodian of the country’s monetary reserve, like other Central Bank of the worlds, possesses an armory of tools or techniques to control and regulate money and credit. Hence, the role that CBN plays in the implementation of monetary policy is critically examined and this valid exposition formed the basis of recommendation of this study. Necessary information regarding the study was collected through the use of questionnaire from selected managers in the CBN. The descriptive research methodology was employed and the percentage method was used to analyze the datacollected. The study was organized motive chapters starting with the introduction of the study to the conclusion and recommendations.

TABLE OF CONTENTS
Title page                                                         i
Certification                                                     ii
Dedication                                                       iii
Acknowledgement                                            iv-v
Table of contents                                             v

CHAPTER ONE
1.0   Introduction                                             1
1.1   Statement of the Problem                        3
1.2   Objectives of the Study                            4
1.3   Significance of The Study                                4
1.4   Definition of Terms.                                 5
1.5   Limitation of The Study                           7
1.6   Plan of The Study                                    7
CHAPTER TWO
2.0   Literature Review                                     9
2.1   Conceptual Definition                              9
2.2   Monetary Policy in Nigeria                               14
2.3   Framework For Monetary Target In Nigeria               21
2.4   Inflation Targeting                                           24
2.5   The Rationale For Inflation Targeting               25
2.6   Requirment For Inflation Targeting                  26

CHAPTER THREE
3.0   Research Methodology                                     30
3.1   Sources of Data                                               30
3.2   Population of The Study                                  31
3.3   The Sampling Techniques                                       31

CHAPTER FOUR
4.0   Data Presentation And Analysis                       32
4.1   Data Presentation                                            32
4.2   Data Analysis                                                   33

CHAPTER FIVE
5.0   Summary Conclusion and Recommendations 39
5.1   Summary                                                         39
5.2   Conclusion                                                      41
5.3   Recommendations                                           42
References                                                       44   

CHAPTER ONE
1.0   INTRODUCTION
An appraisal of the banking industry show that the industry is determined by several factors, but the most influencing of all is director factor of regulatory frame work, under which the industry operator. This framework can be divided into two broad aspects of monetary and banking.
In all economics, the conduct of both policies are normally. Originated through banking institution who play an international process, the role of bringing lender and borrows together. Though in this process, the central bank play a crucial role in determine the price of money therefore monetary policy is important by its own right from the past view of monetary economics and policy maker and in term of its impact on the economy.
Of all the tools available to the government for directing the course of economy, monetary policy has proven to be the most feasible instrument for achieving medium term stabilization objectives (CBN guideline 2003) monetary policy formulation and implement emerge on a critical government responsibility if the economy is not to be a strayed. Policy are not made for their own sake, they are directed toward achieving a desired goal over a period of time
Generally the primary objective of monetary policies concern with the discretionary control of monetary supply by the monetary authority in order to achieve the stated economy goals. The government uses the macroeconomic stabilization policy which is broad term that embraces a target family of economic policies.
These polices are designed in an attempt to change the trend of some monetary valuable in particular direction so as to include the desired behavioral change in monetary policy. The banks role is to conduct appropriate monetary policy that is consistent with the main economic objective of achieving real growth in gross domestic product low inflation rate and a stable balance of payment position. This is irrespective of whether the direct or indirect approach is put in place to control money and credit.
In this regard the CBN determine the amount of money supply that is consistent and manipulates the monetary instruments, instrument at its disposal in order to achieve the stated objective because there is a belief that there is a relationship between the variable and monetary variable.

1.1   STATEMENT OF THE PROBLEM
-       What rule did draconian sent into banking sector
-       What roll did monetary authorities play in formulate policy guideline.
-       How can economy grow without the banking sector?
-       Why some policies been implemented by the commercial banks as stated by the CBN.

1.2   OBJECTIVE OF THE STUDY
1.     To analyze various monetary policy instrument that have been previously used and the extent to which this have contributed to the development of banking sector in Nigeria.
2.     To examine the operation of commercial bank and find out if they have strictly adhere to regulation of monetary authorities (CBN).
3.     To draw conclusion and make policy recommendation base of finding from the study.

1.3 SIGNIFICANCE OF THE STUDY
This study will be of great benefit to bankers policy makers, investment analyst and the private and public sector, Moreover it will be useful to policy make in an attempt to fashion out dynamic and reliable monetary policy measure for controlling commercial banks in their ability to create money there y influence the performance of the economy.
Also, this work will also add to the existing knowledge in banking professional.

1.4   DEFINITION OF THE TERMS
        Brief definitions of the terms relevant to this highlighted below.

  1. Monetary policy: This is concerned with the use of money supply and credit control to change macro-economic activities.
  2.  Discount Rate: This is the rate of interest paid by banks to CBN when they borrow from them.
  3. Research requirement: This is the function of commercial banks demand and time deposit that must be kept with the CBN.
  4. Open Market operations: It is the selling and buying of government and other eligible security by CBN in open market.
  5. Special deposit: This means supplementary revenue that are used by CBN to reduce the volume of commercial banks liquidity.
  6. Moral Suasion: This involve the employment of persuasion or public pronouncement or outright appeals on the part of monetary authorities to the bank regulating to operate in a particular direction for the realization of specified objective.
  7. Direct credit control: This involves imposition of quantitative ceiling on the overall commercial banks credit y the CBN.
  8. Monetary target: this is value that the monetary authorities shoot at in determining their appropriate policies.
  9. Monetary People: It simply the money stock of any moment in the economy on the other hand, it is defined as currency with the public and demand deposit with commercial bank.
  10. Gross Domestic Products: This measure the output produced factors of production in the domestic economy regardless it who own these factors within the nation.

1.5   LIMITATION OF THE STUDY
This work aim at examining the effect of monetary policy on the development of banking sector.
The problem encountered and the way forward. This study is restricted to the operation of monetary policy in Nigeria, between 1992 – 2008.

1.6   PLAN OF THE STUDY
This research work consist of five chapters. Chapter one of this research works is made up of the introduction the statement of the study the objective of the study, the significance of the study the limitation of the study, the definition of terms and the plan of the study.
Chapter three of this research work also includes research methodology.
Chapter four consists of data presentation and analysis.

Finally Chapter five of this research work includes summary conclusion and recommendation

CHAPTER TWO: The chapter one of this work has been displayed above. The complete chapter two of "appraisal of monetary policy implementation in nigerian banks" is also available. Order full work to download. Chapter two of "appraisal of monetary policy implementation in nigerian banks" consists of the literature review. In this chapter all the related work on "appraisal of monetary policy implementation in nigerian banks" was reviewed.

CHAPTER THREE: The complete chapter three of "appraisal of monetary policy implementation in nigerian banks" is available. Order full work to download. Chapter three of "appraisal of monetary policy implementation in nigerian banks" consists of the methodology. In this chapter all the method used in carrying out this work was discussed.

CHAPTER FOUR: The complete chapter four of "appraisal of monetary policy implementation in nigerian banks" is available. Order full work to download. Chapter four of "appraisal of monetary policy implementation in nigerian banks" consists of all the test conducted during the work and the result gotten after the whole work

CHAPTER FIVE: The complete chapter five of design and construction of a "appraisal of monetary policy implementation in nigerian banks" is available. Order full work to download. Chapter five of "appraisal of monetary policy implementation in nigerian banks" consist of conclusion, recommendation and references.

 

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