Effect Of Monetary Policy Measures On Commercial Banks Credit Creation In Nigeria:- Akachukwu, Jennifer C
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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MICHAEL, U (2026). Effect Of Monetary Policy Measures On Commercial Banks Credit Creation In Nigeria:- Akachukwu, Jennifer C. Repository.mouau.edu.ng: Retrieved Apr 28, 2026, from https://repository.mouau.edu.ng/work/view/effect-of-monetary-policy-measures-on-commercial-banks-credit-creation-in-nigeria-akachukwu-jennifer-c-7-2
UNIVERSITY, MICHAEL. "Effect Of Monetary Policy Measures On Commercial Banks Credit Creation In Nigeria:- Akachukwu, Jennifer C" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 28 Apr. 2026, https://repository.mouau.edu.ng/work/view/effect-of-monetary-policy-measures-on-commercial-banks-credit-creation-in-nigeria-akachukwu-jennifer-c-7-2. Accessed 28 Apr. 2026.
UNIVERSITY, MICHAEL. "Effect Of Monetary Policy Measures On Commercial Banks Credit Creation In Nigeria:- Akachukwu, Jennifer C". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 28 Apr. 2026. Web. 28 Apr. 2026. < https://repository.mouau.edu.ng/work/view/effect-of-monetary-policy-measures-on-commercial-banks-credit-creation-in-nigeria-akachukwu-jennifer-c-7-2 >.
UNIVERSITY, MICHAEL. "Effect Of Monetary Policy Measures On Commercial Banks Credit Creation In Nigeria:- Akachukwu, Jennifer C" Repository.mouau.edu.ng (2026). Accessed 28 Apr. 2026. https://repository.mouau.edu.ng/work/view/effect-of-monetary-policy-measures-on-commercial-banks-credit-creation-in-nigeria-akachukwu-jennifer-c-7-2