IMPACT OF MONETARY POLICY ON BANKS FINANCIAL PERFORMANCE IN NIGERIA
Abstract
stady examined the impact of monetary policy on bank /inascial performance in Negerio.
Ex-pour facto reseurch design was adopted to esumine hen monetary policy veriables ofect
financial performosee megsured by rerurn on auers in selected Nigerian deposit money
banks over a period of (20- 2023). The Stady is established on Quantity of Moncy Theory:
Multiple regressions were used to estimale the joint and individual effects of monetary policy
variables measured by exchange rote, monetary policy rate and maximum bank lending rate
o n return on assets. The study revealed that the endogenous vuriables were significantly
related with the dependent variable (return on assets). Thas, these independen variables
strongh hose an impuct on the financial performance of deposit, money banks in Nigerio
measured by renor on assetif is concluded thor monetary policy instruments have heen
ejectine for deposit money banke by inducing higher savings, increasing credit supply.
stimulating inesomen which helps these banks to generate higher level of profitability.
Therefore, the Study recommended that the Goremment should olso consistently adopt
monetary policies thar will help Nigerian hooks to improve on their profitability und aiso
there is a need to strenghen monetary policy rate through effectise and egficient
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