Impact of Monetary Policy on Deposit Money Banks' Performance in Nigeria

Authors

  • Kazeem Adesina Shittu
    Nnamdi Azikiwe University, Akwa
  • Temitope Oluwaseun Akanbi
    Nnamdi Azikiwe University, Akwa
  • Abosede Abiodun Abiodun
    Osun State University

Keywords:

Monetary Policy, Money deposit, Banks' Performance, Capital investment

Abstract

This study examined the effectiveness of monetary policy on deposit money banks' performance in Nigeria. The study covered deposit money bank listed on Nigeria Exchange Group between (2015 to 2022) with selected Eight (8) bank firms. Information of the individual deposited money bank listed on the Nigeria Exchange Group within the period mentioned above was obtained through secondary data made available on their annual reports audited by statutory auditors and published by Nigerian Security and Exchange Commission. Descriptive statistics and Inferential statistics like ordinary least squares and correlation analysis were adopted to analyzed data. Monetary policy was measured using interest rate (IR), liquidity ratio (LR) and cash reserve ratio (CRR) “Perfomance” was measured using return on asset. The study showed that the correlation analysis monetary policy tools showed no significantly impact on return on asset (ROA) with p-value of 78% with p-value > 0.05. Therefore, the study recommended that loans to deposit ratio and cash reserve should review upward in order to improve financial performance of deposit money banks. Central bank should monitor micro-dynamics of individual's bank behaviour and continuously assess and enhance the efficacy of interest rate pass to the lending channel of monetary policy transmission mechanism. Government should strive to control Inflation rate and monetary authorities should ensure that monetary policy rate and interest rates are stable to mitigate interest rate risks and make money supply flexible.

Dimensions

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Published

2025-10-20

How to Cite

Shittu, K. A., Akanbi, T. O., & Abiodun, A. A. (2025). Impact of Monetary Policy on Deposit Money Banks’ Performance in Nigeria. FUDMA Journal of Humanities, Social Science and Creative Arts , 1(2), 1-8. https://doi.org/10.70882/fujohssaca.2025.v1(2).26

Issue

Vol. 1 No. 2 (2025): FUDMA Journal of Humanities, Social Science and Creative Arts Vol. 1(2)

Section

Articles
Copyright & Licensing

Copyright (c) 2025 Kazeem Adesina Shittu, Temitope Oluwaseun Akanbi, Abosede Abiodun Abiodun (Author)

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How to Cite

Shittu, K. A., Akanbi, T. O., & Abiodun, A. A. (2025). Impact of Monetary Policy on Deposit Money Banks’ Performance in Nigeria. FUDMA Journal of Humanities, Social Science and Creative Arts , 1(2), 1-8. https://doi.org/10.70882/fujohssaca.2025.v1(2).26