scholarly journals Effect of Monetary Policy on Financial Intermediation in Nigeria

2020 ◽  
pp. 22-36
Author(s):  
Chukwu, Kenechukwu Origin ◽  
Ogbonnaya-Udo, Nneka
Keyword(s):  
Monetary Policy ◽  
Financial Intermediation ◽  
Research Work ◽  
Secondary Data ◽  
Causality Test ◽  
Explanatory Variables ◽  
Financial Infrastructure ◽  
Effect Of Monetary Policy ◽  
The Cost ◽  
Reserve Ratio

The study examined the effect of monetary policy on financial intermediation in Nigeria. Secondary data were collected from Central Bank of Nigeria statistical bulletin spanning from 1988 to 2018.The research work selected Nigeria as its sample and used the VECM to test the effect of the explanatory variables (Monetary Policy Rate, Cash Reserve Ratio, Loan to Deposit Ratio and Liquidity Ratio) on the dependent variable (Total Domestic Bank Credit).The findings from the study revealed that monetary policy has insignificant effect on intermediation in Nigeria. The granger causality test also shows a unidirectional causality between monetary policy and intermediation in Nigeria. The results suggest that lending interest rate is still high while deposit rate is low and this discourages savings and borrowing in the country. The study recommends among others that monetary policy should be reviewed in order to lower the cost of borrowing (lending rate) so as to encourage investors to borrow more. Commercial banks should try to increase its deposit rates which will help them to mobilize more deposits, as this will enhance their lending services. Financial infrastructure in the country should be improved upon as this will help banks in deposit mobilization especially the unbanked in the country.

scholarly journals Pengaruh Guncangan Kebijakan Moneter dan Variabel Makro Terhadap Dana Pihak Ketiga (DPK) Bank Syariah di Indonesia

2017 ◽  
Vol 4 (8) ◽  
pp. 642
Author(s):  
Mohammad Abdul Adim ◽  
Raditya Sukmana
Keyword(s):  
Monetary Policy ◽  
Secondary Data ◽  
Islamic Banks ◽  
Monetary Policy Shocks ◽  
Financial Reports ◽  
Vector Autoregressive ◽  
Long Run ◽  
Policy Shocks ◽  
Short Run ◽  
Effect Of Monetary Policy

The purpose of this research is to find out the effect of monetary policy shocks and macro variables towards Islamic banks deposits. The method that used in this researc his quantitative method and also using secondary data which obtained from financial reports and other reports started from 2005 until the end of 2015. Analysis technique used is Johansen Cointegration and Vector Autoregressive (VAR). The result are monetary policy shocks have affect significant on deposits Islamic banks in long run and short run. Furthermore, variables macroeckonomic like GDP and CPI have effect significant on deposits in Islamic banks. interestingly, the money supply in the long run have significant effect on Islaimc banks deposits, but in the short run does not have a significant effect on the deposits of Islamic banks.

The Effect of Monetary Policy on the Nigerian Deposit Money Bank System

2014 ◽  
Vol 3 (1) ◽  
pp. 39-52
Author(s):  
Alex Ehimare Omankhanlen
Keyword(s):  
Monetary Policy ◽  
Regulatory Authority ◽  
Banking System ◽  
Least Square ◽  
Ordinary Least Square ◽  
Independent Variables ◽  
Effect Of Monetary Policy ◽  
Bank System ◽  
Reserve Ratio ◽  
Nigerian Banking

This study investigates the effect of monetary policy on the Nigerian Deposit Money Bank (DMB) System. The Nigerian banking system is currently under-going a series of reforms in order to enhance its competitiveness and efficiency. The Ordinary Least Square (OLS) method is used to examine the effect of monetary policy on the Nigerian Deposit Money Bank System, using such variables as total loans and advances (TLA) as dependent variable and liquidity ratio (LR),cash reserve ratio (CRR), monetary policy rate (MPR), and average exchange rate (AER) as independent variables. The result of the findings shows that monetary policy rate reveal the most significant effect on commercial banks loans and advances during the period under study. The study thus recommends, among others, that the regulatory authority Central Bank of Nigeria should create credit procedures, policies and analytical capabilities which should be entrenched in the credit management of DMB's operations.

scholarly journals Effect of Cashless Policy on Deposit Money Banks Profitability in Nigeria

2020 ◽  
pp. 48-63
Author(s):  
Clem Nwakoby ◽  
Kenechukwu Origin Chukwu ◽  
Ezekiel Okoh Oghenetega
Keyword(s):  
Secondary Data ◽  
Point Of Sale ◽  
Explanatory Variables ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Innovative Products ◽  
Financial Infrastructure ◽  
Lag Model ◽  
Auto Regressive ◽  
Set Up

The effect of cashless policy on deposit money banks is expected to increase the profitability of banks; it lowers the operational costs and curbs corruption. As such this study tends to ascertain the effect of cashless policy on deposit money banks profitability in Nigeria from 2009 to 2019. Secondary data from the Statistical bulletin of Central Bank of Nigeria was used in the study and the ARDL Auto-regressive Distributed lag model was used as a method of data analysis. The explanatory variables are Point of Sale (POS) Terminal, Automated Teller Machine, Mobile Banking, and Web Payment while the dependent variable is Profit before Tax. The result from the research indicates that cashless policy has a negative and insignificant effect on profit before tax of deposit money banks in Nigeria within the study period. The study, therefore, makes the following recommendations; banks should educate their customers more on the importance of cashless policy and some of the innovative products they are bringing in the market. They should also improve their financial infrastructure. Power generation and distribution should be improved upon as no electronic banking can take place without adequate power supply. Banks should set up appropriate security processes and use up to date programs to limit the effects of fraud on their products.

scholarly journals Effect of monetary policy on economic growth in nigeria in the post structural adjustment programme

2021 ◽  
Vol 12 (8) ◽  
pp. 2364-2379
Author(s):  
Kelechi Johnmary Ani ◽  
Chigozie Onu
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rate ◽  
Central Bank ◽  
Structural Adjustment ◽  
Secondary Data ◽  
Financial Sector ◽  
Ordinary Least Squares ◽  
National Bureau ◽  
Effect Of Monetary Policy

The study investigated the effect of monetary policy on economic growth during post structural adjustment programmer in Nigeria. It used the expo-facto design. Secondary data for the period of 1985-2015 were utilized. The data were extracted from the Central Bank of Nigeria (CBN) Statistical Bulletin and the National Bureau of Statistics (NBS). The linear regression with the application of Ordinary least Squares (OLS) technique was employed to estimate the parameters of the model numerically. Finding revealed that broad money supply had a positive and significant effect on economic growth in Nigeria during post structural adjustment programmer from 1986-2015. Interest rate had a negative and significant effect on economic growth in Nigeria during the same period and inflation rate had a positive and insignificant effect on economic growth in Nigeria at the same time. The study recommended that Central Bank of Nigeria should facilitate the emergence of market based interest rate that would attract both domestic and foreign investments, as well as create jobs, and promote non-oil export, while reviving industries that are currently operational, far below installed capacity. In order to strengthen the financial sector, the Central Bank has to encourage the introduction of more financial instruments that are flexible enough to meet the risk preferences and sophistication of operators in the financial sector.

scholarly journals Effectiveness of Quantitative Monetary Policy Implementation in the Success of Full Employment in Nigeria: 1986-2018

2021 ◽  
pp. 39-57
Author(s):  
Chukwu Kenechukwu Origin ◽  
Ezekiel Okoh Oghenetega ◽  
Chimarume Blessing Ubah
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Policy Implementation ◽  
Central Bank ◽  
Full Employment ◽  
Small And Medium Enterprises ◽  
Research Work ◽  
Policy Instruments ◽  
Secondary Data ◽  
Employment Rate

This study investigated the effectiveness of quantitative monetary policy implementation in the success of full employment in Nigeria (1986-2018) using secondary data from Statistical bulletin of Central Bank of Nigeria. The research work used the ARDL Auto-regressive Distributed lag models to test the effect of the independent variables (Cash Reserve Ratio, Broad Money Supply, Monetary Policy Rate, Exchange Rate and Liquidity Ratio) on the dependent variable (Employment Rate). The research discovered that quantitative monetary policy instruments had insignificant but positive effect on the employment rate in Nigeria. The research therefore advocates that Government should embark on joint harmonization of fiscal and monetary policy. Central Bank should adopt expansionary monetary policy in order to infuse more funds in the economy. Equally Central Bank should build an efficient and sustained low interest rate intervention fund to support the real sector, especially small and medium enterprises. Government should try to operate a single exchange rate unlike multiple exchange rates it operates within the period of the study.

scholarly journals Historical Analysis of Income Statement – A Case Study Salalah Mills Company Oman

2021 ◽  
Vol 2 (1) ◽  
pp. 22-28
Author(s):  
Balamurugan Muthuraman ◽  
◽  
Abdullah Al Mawali
Keyword(s):  
Raw Materials ◽  
Research Work ◽  
Secondary Data ◽  
Profit Margin ◽  
Financial Ratios ◽  
Annual Reports ◽  
Operating Income ◽  
Income Statement ◽  
Administrative Expenses ◽  
The Cost

Purpose of the study: The objectives of the study were to critically analyze the financial performance of Salalah Mills Company (SMC), to examine the income statement position of the company, and to study the profitability position and improvements of Salalah Mills Company.Design/Methodology/Approach: The secondary data was obtained from the annual reports of Salalah Mills Company through the income statement for the period 2015 to 2019. The collected data was analysed using financial ratios involving excel and SPSS, to evaluate the Salalah Mills Company (SMC) profitability. Findings: The study revealed that the reduction in the company's gross profit (profit margin), the pre-tax margin was due to the increase in the cost of goods sold, administrative expenses, the cost of materials consumed, the selling and distribution expenses, and the labour cost. Research Implications: The study suggested that the company should reduce the cost of sales and administrative expenses to achieve an increased gross profit margin. It was also suggested that the company should focus more on marketing. Practical Implications: The study suggested that the company should look for an alternative for raw materials such as buying wheat from the local farmers. It was also suggested that the company should work on finding ways and means to achieve good profits so as to satisfy the shareholders. Originality/value: This research work is of its first own kind as the study focuses on the accounting perspectives of the food company in the Sultanate of Oman. Keywords: Direct cost of sales, Operating Income of the Flour Mills, Income Statement Analysis, Financial ratios, Market share of flour mills.

scholarly journals Analysis of Monetary Policy, Capital, Saving, FDI, and Economic Development for High and Middle Income Economies with ARDL Approach

2020 ◽  
pp. 43-56
Author(s):  
Qamar Rasheed
Keyword(s):  
Monetary Policy ◽  
Economic Development ◽  
Time Series Data ◽  
Series Data ◽  
Macroeconomic Factors ◽  
Middle Income ◽  
Explanatory Variables ◽  
Economic Output ◽  
Distributed Lag ◽  
Effect Of Monetary Policy

Monetary policy and macroeconomic factors play a decisive and fascinating role to determine the economic output of the country. Policymakers and economists take very seriously and consider them deterministic because these factors have an influence on each other. Therefore, the research has the objective to delineate the effect of monetary policy and all given indicators together on economic development precisely and their interdependence as well. ARDL (Autoregressive Distributed Lag) Bounds test cointegration technique is applied by employing annual time series data from 1980 to 2018. Money supply, lending interest rate, inflation, capital, saving, FDI, and economic development are said to be independent variables and explanatory variables one by one for each country separately to ascertain their interdependence.

scholarly journals NFLASI DI INDONESIA PADA PERIODE 2011-2015: ANALISIS SERTIFIKAT BANK INDONESIA, SERTIFIKAT BANK INDONESIA SYARIAH, PASAR UANG ANTAR BANK, PASAR UANG ANTAR BANK SYARIAH, FINANCE TO DEPOSIT RATIO DAN LOAN TO DEPOSIT RATIO

2019 ◽  
Vol 5 (12) ◽  
pp. 1070
Author(s):  
Achmad Adnan Fauzi Wicaksana ◽  
Raditya Sukmana
Keyword(s):  
Monetary Policy ◽  
Financial Services ◽  
Inflation Rate ◽  
Secondary Data ◽  
Money Market ◽  
Monetary Policy Transmission ◽  
Long Run ◽  
Policy Transmission ◽  
Negative Effect ◽  
Effect Of Monetary Policy

This study aims to examine the effect of monetary policy transmission through conventional and sharia systems to the inflation rate in Indonesia from January 2011 to December 2015. The approach used is Vector Error Correction Model (VECM)quantitative method using Eviews 8 program. The data used was secondary data from the official website of Bank Indonesia and the Financial Services Authority (Otoritas Jasa Keuangan/OJK). The result of the research shows that in the long run, conventional monetary policy transmission has aneffect on inflation rate in Indonesia, namely the interest rate of Bank Indonesia Certificates which has a positive and significant effect to the inflation rate in Indonesia. Interbank money market variables have negative and significant influence on the inflation rate. While the loan to deposit ratio variable doesn't have any effect on inflation rate. On the sharia side, the results show that in the long run, the sharia monetary policy transmission has an effect on inflation in Indonesia, namely Bank Indonesia Sharia Certificate that has significant negative effect and sharia money market has significant positive effect,whilst finance to deposit ratio doesn't.

scholarly journals Profitability of Smallholder Sugarcane Farming in Swaziland: The case of Komati Downstream Development Programme (KDDP) Sugar Farmers’ Associations, 2005-2011

2012 ◽  
Vol 2 (1) ◽  
pp. 8 ◽  
Author(s):  
Micah Bheki Masuku ◽  
Mandla Bhekumusa Dlamini
Keyword(s):  
Collective Action ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Farm Size ◽  
Explanatory Variables ◽  
Sugarcane Farming ◽  
Crop Husbandry ◽  
The Cost ◽  
Structured Questionnaire

<p>Smallholder sugarcane growing is central to rural development and poverty alleviation in Swaziland. The main objective of the study was to investigate the profitability of smallholder sugarcane farmers’ associations under KDDP and to explain the determinants of sugarcane profitability. The study used data from 2004/05 to 2010/11 production seasons for 15 smallholder sugarcane farmers’ associations under KDDP. A structured questionnaire was used to solicit production and financial data. Secondary data were obtained from accounting records of the farmers. The associations were purposively selected because of their experience in sugarcane production. Descriptive statistics such as mean, standard deviation, minimum and maximum values were used in data analysis. The cost and returns analysis was used to assess the profitability, whilst multiple linear regression analysis was used in identifying the determinants of profitability.The associations were found to be profitable with a mean profit per hectare of E5080.00.The further results indicated that variables such as farm size, farming experience, sucrose price, labour cost per hectare and fertilizer cost per hectare significantly (p&lt;0.01) influence the profitability of smallholder sugarcane farmers’ associations in the study area. The adjusted R<sup>2</sup> was 0.623, suggesting that about 62.3% in the variation in profit per hectare is explained by the explanatory variables. It is, therefore recommended that good crop husbandry practices like timely weeding, fertilization, and irrigation should be adopted to produce a good crop which will enhance profitability. There is need for the promotion of collective action as an institutional means to improve bargaining power of farmers, especially when procuring inputs. Collective action will enable smallholder sugarcane farmers to buy in bulk and be entitled to discounts and that can enhance sustainability of profitability of the farmers.<strong></strong></p>

scholarly journals THE EFFECT OF MONETARY POLICY ON FINANCIAL PERFORMANCE OF THE COMMERCIAL BANKS LISTED ON THE NAIROBI SECURITIES EXCHANGE

2017 ◽  
Vol 1 (1) ◽  
pp. 74
Author(s):  
Kerongo Maatwa Meshack ◽  
Mrs Winnie Nyamute
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Financial Performance ◽  
Commercial Banks ◽  
Total Population ◽  
Secondary Data ◽  
Macroeconomic Policies ◽  
Bank Rate ◽  
Effect Of Monetary Policy ◽  
Descriptive Survey

Purpose: The purpose of this study was to establish the effect of monetary policy on the financial performance of commercial banks listed in the Nairobi securities Exchange in KenyaMethodology: The study adopted a descriptive survey of the commercial banks listed on the NSE. The total population consisted of all 11 commercial banks listed on the NSE as at 30 June 2015. Since the population of the study was small, the study used secondary data which was readily available from both the Central Bank of Kenya and the Nairobi Securities Exchange. All the listed commercial banks were included hence a census study.Results: The findings from the study confirmed that monetary policy tools such as CBR, CRR and OMO had varying degrees of relationship with the financial performance of the commercial banks listed on the NSE. The study also revealed that OMO rates positively influenced returns of the listed commercial banks at the NSE .This study also established that OMO rates were positively correlated with the financial performance of the commercial banks listed on the NSE while the Central bank rate and the CRR rate negatively influenced the financial performance of commercial banks listed on the NSE.Unique contribution to theory, practice and policy: This study therefore recommended that the Country should handle its macroeconomic policies appropriately as the changes in the macroeconomics like CBR, CRR and OMO bring about devaluation of the currency and affect the performance of the commercial banks listed in NSE.

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