The Impact of Monetary Policies on Commercial Banks
CHAPTER ONE
1.0 INTRODUCTION
The desire to develop a viable monetary policy has reached it unprecedented limit in the
economy, money as a medium of exchange emerged with the waves to organize a political
and economical institution which will enforce a unique legal tender. Nowadays, money has
played an indispensable role in propelling the activities of the economy.
Monetary policy is the major pre-occupation of the Central Bank of Nigeria (CBN), the
extent to which they enforce their role successfully would depend on the statutory power
conferred on them by the establishing law. It involves the management of the expansion and
contraction of the money in circulation.
Monetary policy may yield better result during period of expansion, prosperity (Boom) and
recession. These policies are more adequate for solving today’s complex economic problems
and have blended very well in tackling contemporary domestic and global economic
phenomenon.
Generally, for a sound and prudent enhancement of activities in commercial bank,
coordination of monetary policies can create an integral path for a vibrant economy.
1.1 STATEMENT OF THE PROBLEM
Distress in commercial bank in Nigeria has called for a serious controversial debate, as to
what should be the cause of this distress. A pilot study about this business phenomenon’s
reveals that most of these failures are associated with the monetary policies implemented.
Why then do these policies fail to enhance the corporate culture of banks activities and other
related problem will constitute the statement of this research.
a) The inconsistencies of these monetary policies by the authority: consequence on activities
of commercial banks.
b) The negligence exhibited by some of commercial banks in implementing some of these
policies established
1.0 INTRODUCTION
The desire to develop a viable monetary policy has reached it unprecedented limit in the
economy, money as a medium of exchange emerged with the waves to organize a political
and economical institution which will enforce a unique legal tender. Nowadays, money has
played an indispensable role in propelling the activities of the economy.
Monetary policy is the major pre-occupation of the Central Bank of Nigeria (CBN), the
extent to which they enforce their role successfully would depend on the statutory power
conferred on them by the establishing law. It involves the management of the expansion and
contraction of the money in circulation.
Monetary policy may yield better result during period of expansion, prosperity (Boom) and
recession. These policies are more adequate for solving today’s complex economic problems
and have blended very well in tackling contemporary domestic and global economic
phenomenon.
Generally, for a sound and prudent enhancement of activities in commercial bank,
coordination of monetary policies can create an integral path for a vibrant economy.
1.1 STATEMENT OF THE PROBLEM
Distress in commercial bank in Nigeria has called for a serious controversial debate, as to
what should be the cause of this distress. A pilot study about this business phenomenon’s
reveals that most of these failures are associated with the monetary policies implemented.
Why then do these policies fail to enhance the corporate culture of banks activities and other
related problem will constitute the statement of this research.
a) The inconsistencies of these monetary policies by the authority: consequence on activities
of commercial banks.
b) The negligence exhibited by some of commercial banks in implementing some of these
policies established