TABLE OF CONTENTS
CHAPTER ONE
Introduction
1.1
Background of the study
1.2
Statement of problem
1.3
Objective of the study
1.4
Significance of the study
1.5
Limitation of the study
1.6
Definition of terms.
CHAPTER TWO
2.1
Review of related literature
2.2
Evolution application of monetary policy instruments in Nigeria
2.3
An overview of the use of monetary policy instruments in Nigeria.
2.4
Advantages and disadvantage of monetary policy .
2.5
Summary of literature review
CHAPTER THREE
3.1
Research design and methodology
3.2
Research design
3.3
Data collection
3.4
Secondary data
CHAPTER FOUR
4.1
Findings
CHAPTER FIVE
5.1
Conclusion
5.2
Recommendation
5.3
Bibliography
PROJECT FORMAT
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Significance of the study
1.5 Limitation of the study
1.6 Definition of terms.
CHAPTER TWO
2.1 Review of related literature
CHAPTER THREE
Research design and
methodology
3.1
Source of data
3.2
Location of data
3.3
Method of collection (literature work only)
CHAPTER FOUR
4.1Findings
CHAPTER FIVE
5.1 Conclusion
5.2 Recommendation
CHAPTER ONE
INTRODUCTION
Banks are the most
regulated of all business in Nigeria. This is because of the nature of
banking itself and its centrality to the effective functioning of the economic
system.
The importance and
centrality of the banking system in the development of an economy is obvious
and beyond dispute. It plays some roles which include financial
intermediation provision of an efficient payment system and facilitating the
implementation of monetary policy
On intermediation the
banking system mobilizes savings form the surplus and channel them to
investment in operating the payment mechanism the system serves as a medium for
exchange and in execution of monetary policy, the system serves as agents
through which the policies are disseminated
However without banks
arrangement savings and investment will not only be inefficient but may lead to
less than optimum resources allocation.
Accordingly an efficient
and effective system is indispensable not only for the promotion of efficient
intermediation but also for the protection of the depositors
encouragement of a healthy competition and the stability of economy.
The degree of success of
bank in performing the above functions however depends on the financial
and regulatory environment which in itself is a function of the totality of the
environment in which it operate.
1.1 BACKGROUND
OF THE STUDY
In order to have a clear
understanding of the subject matter ie. “ the impact of monetary policy
on the profitability of commercial banks. It is important to
highlight what monetary policy is all about.
The term monetary policy
according to Dr. Ojih (1996) can be defined as the credit control
measures adopted by central bank to control the supply of money as an
instrument for achieving the objectives of general economic policy.
It involves expansion and contraction of money supply the manipulation of
interest rates to make borrowing easier or more difficult depending on the
pervading condition of economy expansionary measure is adopted when the central
bank wants to increase money supply. On the other hand concretionary measure is
adopted when the central bank wants to reduce money
supply.
1.2 STATEMENT
OF PROBLEM
Banks generally play
important role in the development of any economy. Hence the industry is so
sensitive that it is said to be the backbone of every economy. The failure of
bank (commercial banks in particular) may therefore bring about failure of the
entire economy hence the need to control the activities of commercial banks to
ensure effective economic development.
Consequently the
government had always tried to have effective control over commercial banks;
but due to the banks quest for project maximization they have not
always complied with guidelines used by the monetary authorities.
This problem of in
compliance equally made it relatively impossible for the achievement of the
objectives of monetary policy.
However, the problem
which the research wants to point out is the handicap being faced by commercial
banks in trying to strike a balance between liquidity and profitability as
imposed by the governments monetary policy
1.3 OBJECTIVE
OF THE STUDY
Generally the objectives
of monetary policy includes.
-
The control of inflation and maintenance of relative price stability.
-
The promotion of a fast and desirable rate of economic growth and development
-
The maintenance of a low level of unemployment
-
The maintenance of a healthy balance of payment position for the country in
order to safeguarded the external value of the natural currency.
-
Increasing the flow of credit to the priority sector of economy especially the
agricultural and manufacturing sector.
-
The mobilization of increased domestic savings to facilitate domestic capital
formation.
-
Protecting local form unfavorable foreign competition and smugglers reducing
indebtedness abroad and generating more revenue especially form the non-oil
sector of the economy.
1.4 SIGNIFICANCE
OF THE STUDY
The significance of
monetary policy cannot be over emphasized. This if there is inflation or
excess demand causing imports to rise monetary policy is used to reduce the
demand. On the other hard if the rate interest rates are reduced through
monetary policy borrowing is encouraged and the community will benefit.
As mentioned earlier the
objectives of monetary policy are price stability employment and balance of
payment equilibrium which are of paramount importance in economic
development. The research neeks to present the main concept and operation
of monetary policy measure is Nigeria to see if it has been effective in
achieving those objective and how the policy effects the profitability of
commercial bank.
1.5 DEFINITION
OF TERMS
According to Onyido
(1991) monetary policy could be defined as the combination of measures designed
to regulate the supply of money to an economy. Specifically it is
designed regulate the availability (or quantity) coast and direction of credit
in order to attain stated national economic objective.
It ensure that the
supply of money and cost of credit to an economy is adequate to support
desirable and sustainable growth generating inflationary pressures that could
lead to under depreciation in the value of the local currency. A country
monetary policy is usually structured on the monetary system adopted in the
economy.
Department | Banking and Finance |
Project ID Code | BFN0205 |
Chapters | 5 Chapters |
No of Pages | 24 pages |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |