Money is not neutral it is a contributing factor to the greatest economic problem any nation has to face the recurrent cycle of property and depression. It would be going to for to accuse money of being the cause of business cycles but without money business cycles as the know then would be inconceivable the simple exchange mechanism used in a barter economy could earthy get out of order an the way our highly complex financial machinery does just as business cycles (banks) could not exist without money so they could not exist without monetary policy to regulation its operations
The aim of this work is to find out the impact of the monetary policy on the growth of banking industry on Nigeria the samples use in this work were colleted from 12bank in Nigeria covering a period of 20 years four hypothesis were stated to test the impact of the monetary policy on banks growth in Nigeria statistical tools used for the testing of the hypothesis ate data collection through questionnaire for hypothesis four and one
Nevertheless the T test hypothesis was used for the second hypothesis and chi-square was used to test hypothesis one four analyzing the study it was found that the monetary policy has significance impact on the of banking industries in Nigeria. It was also noted that some of the policies are not practicable so respondents suggested that they should be abolished.
In synopsis the study reveals that the lending rates of banks as determined by certify guidelines of the central banks of Nigeria have impact on the profitability of banks. This goes a long ways to from the regulatory authorities and the government to be on guard since there are advantages and disadvantages of the policy instrument
It is a trite fact that the central bank of Nigeria (CBN) was established by the federal government of Nigeria to produce the Nigerian currency enact and execute monetary policy to promote monetary stability and a sound financial system in Nigeria. To regulate the banking sector through its monetary policies and laws which every banks must adhere to before its operations. The central banks of Nigeria carries out this role objective on behalf o the federal government through a process stipulated in the central bank of Nigeria decree No 24 1991 and the banks and other financial institution decree No 25 of 1991
Prior to the enactment of the monetary policy the governor of the central bank of Nigeria make proposals to the president of the federal republic of Nigeria who has the right and power to accept or amend where necessary such proposal. Thus once the proposal are authorized by the president it becomes a law, which the central bank of Nigeria is obligated to implement. The two enabling laws stated above empowers the central banks of Nigeria to direct the carry out other financial institutions to carry out certain duties in pursuit of the approval monetary policy. Usually the monetary policy to be pursued is detailed out in the from of guidelines to all banks. The guidelines are generally operated with in a fiscal years but the element could be amended in the cause of the year. Penalties are normally prescribed for non-compliance with specific provision in the guidelines.
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