Impact of Monetary Policy Rate on the Performance of Deposit Money Banks in Nigeria, 1981- 2018. Evidence from Interest Rate Deregulation
- Post by: airjournals
- January 3, 2022
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ABSTRACT
The broad objective of this study is to examine the impact of interest rate deregulations on the performance of deposit money banks in Nigeria. The specific objectives of the study are to: examine the impact of interest rate on saving deregulation on the performance of deposit money banks in Nigeria. Measures the impact of deposit interest rate deregulations on the performance of deposit money banks in Nigeria, investigate the impact of lending interest rate deregulation on the performance of deposit money banks in Nigeria, determine the cointegration relationship existing between interest rate deregulation and the performance of deposit money banks in Nigeria. Autoregressive distributive lag-Bounds testing approach was used in this study. Saving rate positively and none significantly impacted on the return of assets of deposit money bank from 1981-2018 in Nigeria. Deposit rate positively and significantly impacted on the return of assets of deposit money banks from 1981-2018 in Nigeria. Lending rate positively and non significantly impacted on the return of assets of deposit money banks from 1981-2018 in Nigeria. There is long run relationship existing between interest rate deregulation and return of assets of deposit money banks from 1981-2018 in Nigeria. Based on the above findings, the study concludes that interest rate plays a serious positive influence the growth of the assets of money deposit banks in Nigeria. It was also to be noted that this study can be employed for the purposes of generalization and can be expanded to capture other sphere of the economy with distinctive peculiarities. When these generalizations are made, it is capable of positioning our banking institution to a greater performance and height. Interest rate on saving should be dutifully managed as a driver of economic growth. Effective policies such as policies that will discourage.
Keywords: Monetary Policy Rate, Deposit Money Banks, Long-run Relationship
Authorship
1Ezema, Clifford Anene, Ph.D. and 2Okoye, Gregor Onuora, Ph.D. | Full PDF