AN APPRAISAL OF MONETARY POLICY IMPLEMENTATION IN BANKS
|BANKING AND FINANCE|
No of pages
|MS Word & PDF|
The custom academic work that we provide is a powerful tool that will facilitate and boost your coursework, grades and examination results. Professionalism is at the core of our dealings with clients
For more project materials and info!
Call us here
An appraisal of the banking industry show that the industry is determined by several factors, but the most influencing of all is director factor of regulatory frame work, under which the industry operator. This framework can be divided into two broad aspects of monetary and banking.
In all economics, the conduct of both policies are normally.
Originated through banking institution who play an international process, the role of bringing lender and borrows together.
Though in this process, the central bank play a crucial role in determine the price of money therefore monetary policy is important by its own right from the past view of monetary economics and policy maker and in term of its impact on the economy.
Of all the tools available to the government for directing the course of economy, monetary policy has proven to be the most feasible instrument for achieving medium term stabilization objectives (CBN guideline 2003) monetary policy formulation and implement emerge on a critical government responsibility if the economy is not to be a strayed.
Policy are not made for their own sake, they are directed toward achieving a desired goal over a period of time
Generally the primary objective of monetary policies concern with the discretionary control of monetary supply by the monetary authority in order to achieve the stated economy goals. The government uses the macroeconomic stabilization policy which is broad term that embraces a target family of economic policies.
These polices are designed in an attempt to change the trend of some monetary valuable in particular direction so as to include the desired behavioral change in monetary policy.
The banks role is to conduct appropriate monetary policy that is consistent with the main economic objective of achieving real growth in gross domestic product low inflation rate and a stable balance of payment position.
This is irrespective of whether the direct or indirect approach is put in place to control money and credit.
In this regard the CBN determine the amount of money supply that is consistent and manipulates the monetary instruments, instrument at its disposal in order to achieve the stated objective because there is a belief that there is a relationship between the variable and monetary variable.
1.1 STATEMENT OF THE PROBLEM
– What rule did draconian sent into banking sector
– What roll did monetary authorities play in formulate policy guideline.
– How can economy grow without the banking sector?
– Why some policies been implemented by the commercial banks as stated by the CBN.
1.2 OBJECTIVE OF THE STUDY
1. To analyze various monetary policy instrument that have been previously used and the extent to which this have contributed to the development of banking sector in Nigeria.
2. To examine the operation of commercial bank and find out if they have strictly adhere to regulation of monetary authorities (CBN).
3. To draw conclusion and make policy recommendation base of finding from the study.
1.3 SIGNIFICANCE OF THE STUDY
This study will be of great benefit to bankers policy makers, investment analyst and the private and public sector, Moreover it will be useful to policy make in an attempt to fashion out dynamic and reliable monetary policy measure for controlling commercial banks in their ability to create money there y influence the performance of the economy.
Also, this work will also add to the existing knowledge in banking professional.