Effect Of Monetary Policy Measures On Commercial Banks Credit Creation In Nigeria
ABSTRACT
The study examined the effect of monetary policy on
commercial banks credit creation in Nigeria using time series data from
2000-2016. The data used for the study was sourced from Central Bank of Nigeria
statistical bulletin. The model used was estimated using Nigeria • commercial
banks total credit and monetary policy tools such as monetary policy rate,
liquidity ratio and cash reserve ratio for the period of 2000 to 2016. For the
analysis, ordinary least squares (OLS) multiple regression technique was
employed. The study hypothesized that monetary policy rate have a negative and
significant effect on commercial banks credit creation. It was also found that
cash reserve ratio has a positive and significant effect on commercial banks
credit creation. Again, the effect of liquidity ratio on credit creation was
negative and insignificant. Hence, it was recommended among other things that
prior to making any adjustments in the current monetary rates, the concerned
authorities in this case the Central Bank should adequately assess the
influence of their monetary tools on current credit supply in the economy.
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AKACHUKWU, C (2021). Effect Of Monetary Policy Measures On Commercial Banks Credit Creation In Nigeria. Repository.mouau.edu.ng: Retrieved Dec 23, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-monetary-policy-measures-on-commercial-banks-credit-creation-in-nigeria-7-2
CHIMAMANDA, AKACHUKWU. "Effect Of Monetary Policy Measures On Commercial Banks Credit Creation In Nigeria" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 05 Jul. 2021, https://repository.mouau.edu.ng/work/view/effect-of-monetary-policy-measures-on-commercial-banks-credit-creation-in-nigeria-7-2. Accessed 23 Dec. 2024.
CHIMAMANDA, AKACHUKWU. "Effect Of Monetary Policy Measures On Commercial Banks Credit Creation In Nigeria". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 05 Jul. 2021. Web. 23 Dec. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-monetary-policy-measures-on-commercial-banks-credit-creation-in-nigeria-7-2 >.
CHIMAMANDA, AKACHUKWU. "Effect Of Monetary Policy Measures On Commercial Banks Credit Creation In Nigeria" Repository.mouau.edu.ng (2021). Accessed 23 Dec. 2024. https://repository.mouau.edu.ng/work/view/effect-of-monetary-policy-measures-on-commercial-banks-credit-creation-in-nigeria-7-2