EFFECT OF BANKING GUIDELINES AND POLICIES ON DEPOSIT MONEY BANKS IN NIGERIA (1998 - 2007)

ABSTRACT

 The deposit money banks growth have been under threat in recent, times. Due to the fact that stringent guidelines and policies on, banks thus threatened the profitability couple with non-compliance in most cases leads to reduction in profit of banks. In other to evaluate on these the researcher went on the research though some guide, by determining the effect of banking guidelines and policies, the impact of it on deposit money banks and banking guidelines and policies, the impact of it on deposit money banks and the enforcement of interest rate on banks. In view of these problems research question were made i.e. banking guidelines, prudential policies and interest rate enforcement have no significant relationship with banks, profitability. Analysis were made and the findings were made which reveals that liquidity, CRR, loan to deposit ratio were determinant of profitability for DMBs. Interest rate by CBN on DMB affects profitability. Enforcement of interest rate by CBN on DBM affects profitability. Therefore banking guidelines and policies should be reviewed especially on interested fixing for effective economic growth