TABLE OF CONTENT
CHAPTER ONE
1.1 Introduction.
1.2 Background of the
study
1.3 Statement of
problems
1.4 Purpose/objective
1.5 Significance of the
study
1.6 Limitation of the
study
1.7 Definition of terms
1.8 Reference
CHAPTER TWO
2.0 Review of related
literature
2.1 Reference
CHAPTER THREE
3.1 Research design and
methodology
3.2 Source of data
(secondary source only)
3.3 Limitation of data
3.4 Method of data
collection (literature work only)
CHAPTER FOUR
4.1 FINDINGS
CHAPTER FIVE
5.1 RECOMMENDATIONS AND
5.2 CONCLUSION.
CHAPTER ONE
1.1 INTRODUCTION
Monetary polices in
Nigeria and the United Kingdom, the central bank of Nigeria and the bank of
England act as advisers to the government over monetary polices. The
authorities take the final decision on the matters. In Germany, the contrast in
the case because the German central, the bunds bank of Germany has a
constitutional independency in setting the monetary polices.
The central bank of
Nigeria lender the federal ministry of finance (FMF), we have the central bank
of Nigeria and this is the apex of the regulatory institution of the Nigeria
financial sector. The bank promotes and maintains monetary stability as well as
issuing sound and effective financial system in Nigerian. It issue legal tender
i.e. currency note and coins in Nigeria and maintain Nigeria external reserve
to safeguard the national value of legal currency. The CBN has the
responsibility of formulating and implementing the monetary and exchange rate
policies for Nigeria and many other functions that they perform in Nigeria.
The central bank of
Nigeria has been able to excise its statutory power through its monetary
polices and developmental function in promoting monetary and economic
stability. In Nigeria for example, by controlling the, quality and directions
of credits, monetary polices and optimum quality of money supply has been
maintained and this enhances the economic stability. It development function
encourage the establishment of necessary development bank and financial
institutions wh8ich assist the economic development.
The effectiveness of any
central bank hinges crucially on its ability to promote monetary stability.
Attainment of monetary stability rest on the central bank, the ability to
involve effective monetary polices and to implement then efficiently. Nigerian
bank and other bank were operated without nay control in their availability and
supply of money and circulation and this has brought an effect in our economic
development and also distress among banks. As time went further, the central
bank of Nigeria decided to introduce a new policy called the monetary policy in
the banking sector and through the introduction of that monetary policy into
banking industries helps many banks and also in our economy to stabilize the
value of money.
The central bank of
Nigeria introduces this policy with some instrument to the banking activities
and such instrument is as follows;
1.open market operation
2. Moral section
3. Legal reserve and
etc.
So monetary policy is a
vital policy used by monetary authorities to control the availability of money
in circulation that will help both in our economy and also in our banking
sector.
1.2 STATEMENT OF
PROBLEMS
It is quite clear that
there has been a recorded progress made by the CBN toward resolving the
identified structure imbalance in the banking operation (Akinni 1986)
nevertheless, there have been still some problem as to the implementation of
the monetary policy in the banking sector.
There is the problem of
effectiveness of monetary policy as a tool of banking management. Some of the
tool to acess includes the discount rate, legal reserve ratio and open market
operation and these tools are expected to
1. Meet up with the challenges of the abnormal and
unforeseen demand deposition for repayment of their deposits.
2. Articulate way of moping access liquidity for
the credence of inflation.
3. To guide and direct the financial institution
towards the kind of lending polices pause.
4. To be effective and efficient toward curtailing
the lending ability of bank in the economy
1.3 PURPOSE AND
OBJECTIVE
The following are the
reason for this study;
1. To make sue that the
flow of money equates with the overall banking activities
2. To change the level
of money supply from time to time in order to change the level of banking
activities.
3. It is design to
requate and controls the volume cost and direction of money and credit in the
banks
4. It is design to call
the bank to order by checking and curtailing the high level of inflation in the
bank.
1.4 SIGNIFICANCE OF THE
STUDY
The study will be
beneficial to the following;
1. To the banking
sector.
The study will help the
central bank of Nigeria to appreciate the impact of its efforts toward the
regulation of the banks through the instrument of monetary policy. it will help
the central bank to know it there are still laps prevalent in the policies. It
acts as a comparison between the different policies of different time thereby
helping the central bank of Nigeria to decide on new measure to adopt.
2. To the government:
The study will be of
benefit to the government by helping then to formulate policies, which are
consistent with the general economic trend – activity prevalent at any time.
3. To the financial
institution
It helps the financial
institution as the intermediaries of the central bank of Nigeria to scrutinize
their role towards policies implementation. It further help then to correct or
to avoid their own errors.
4. To the
economy in general:
The study will be of
immense benefit to the constituent of the economy by helping each sector or
section to make decisions in harmony with the existing economic trend at a
time.
5. The
production sector:
This is the sector that
bears mostly the burden of inflation due to the substantial increase in the
cost of manufacturing. The study will therefore enable it to adjust its method
of costing and evaluation so as to reflect the change in the economy.
6. To the
foreign interest GNP:
This project provide the
outside the opportunity of knowing the working mechanism of the Nigeria
financial system. It will also help him to know the value of national currency
with regards to its purchasing power and the general economic tread.
1.6 DEFINITION OF TERMS
1. Apex bank:
This refers to the
central bank of Nigeria known as “the bankers bank”. It control the activities
of other banks
2. Inflation:
This is persistence rise
in the general price level which cause the purchasing power of nominal money to
fall, its rate it measured by consumers price index.
3. Consumer price index:
A simple number showing
how on the average the price of a selects number of a selected goods standing
relatively to some based year price.
4. Monetary policy:
This refers to the
credit control measure adopted by the central bank of a country. It is use to
consume the supply of money as an instrument of archiving the objective of
general economic policy.
5. Balance of payment:
This term define the
trading stands of a particular country with another country with which it
engages its trade
1.7 REFERENCE
The identified
instrument imbalance in the banking sector (Akinni – 1986)
Whitman D. an
introduction to monetary policy (the free press New York. 1976)
The identified
instructural imbalance in the banking sector (Akinni – 1986)
Department | Banking and Finance |
Project ID Code | BFN0034 |
Chapters | 5 Chapters |
No of Pages | 35 pages |
Methodology | Descriptive |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |