Impact of Monetary Policy on Bank Credit in Nigeria
| dc.contributor.author | SANNI MUBARAQ | |
| dc.contributor.author | OKE LUKMAN ADEBAYO | |
| dc.contributor.author | ABOGUN SEGUN | |
| dc.contributor.author | ABOGUN SEGUN | |
| dc.date.accessioned | 2024-07-30T12:37:09Z | |
| dc.date.available | 2024-07-30T12:37:09Z | |
| dc.date.issued | 2020 | |
| dc.description | This study finds that while the money supply positively influences bank credit in Nigeria, the liquidity ratio negatively affects it. It recommends that the Central Bank of Nigeria focus on lowering the liquidity ratio and increasing the money supply to enhance banks' credit creation ability and stimulate economic growth. | |
| dc.description.abstract | Abstract Objective – The aim of this study is to examine the impact of monetary policy on credit creation ability of banks in Nigeria. Specifically, it investigates the impact of monetary policy rate, money supply, liquidity ratio, and change in maximum lending rate on bank credit in Nigeria. Design/methodology: Monthly time series data from 2007–2019 was sourced from the statistical bulletin of the Central Bank of Nigeria. The sourced data was subjected to multiple regression analysis using fully modified ordinary least-square regression to estimate the parameters of the model. Results: Findings reveal that money supply significantly and positively influences bank credit in Nigeria, while liquidity ratio significantly but negatively influences bank credit in Nigeria. On the contrary, monetary policy rate and maximum lending rate were found not to significantly affect bank credit in the case of Nigeria. Policy Recommendation: Study therefore recommends that monetary authorities, especially the Central Bank of Nigeria, should pay more attention to lowering the liquidity ratio while increasing money supply in order to enhance banks credit creation ability and further stimulate the Nigerian economy for growth | |
| dc.description.sponsorship | SELF SPONSORED | |
| dc.identifier.citation | Ademokoya, A. A., Sanni, M., Oke, L. A., and Abogun, S. (2020): Impact of monetary policy on bank credit in Nigeria. Journal of Accounting Research, Organization and Economics. 3(3): 196-205, Published by Universitas Syiah Kuala, Indonesia. Available online at https://jurnal.usk.ac.id/JAROE/article/view/17879/13304 | |
| dc.identifier.issn | 2621-1041 | |
| dc.identifier.uri | https://kwasuspace.kwasu.edu.ng/handle/123456789/2043 | |
| dc.language.iso | en | |
| dc.publisher | Universitas Syiah Kuala, Indonesia | |
| dc.relation.ispartofseries | 3; 3 | |
| dc.title | Impact of Monetary Policy on Bank Credit in Nigeria | |
| dc.type | Article |