Impact of Monetary Policy Instruments on Profitability of Commercial Banks in Nigeria: Zenith Bank Experience

UDEH, Sergius Nwannebuike (2015) Impact of Monetary Policy Instruments on Profitability of Commercial Banks in Nigeria: Zenith Bank Experience. Research Journal of Finance and Accounting, 6 (10). ISSN 2222-2847 Vol.6, No.16, 2015

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Abstract

This paper examined the impact of monetary policy instruments on profitability of commercial banks in Nigeria using the Zenith Bank Plc experience. The paper used descriptive research design. It utilized time series data collected from published financial statements of Zenith Bank Plc as well as Central Bank of Nigeria Bulletin from 2005 to 2012. Four research questions and four hypotheses were raised for the study. Pearson Product moment correlation technique was used to analyze the data collected while t-test statistic was employed in testing the hypotheses. The study discovered that cash reserve ratio, liquidity ratio and interest rate did not have significant impact on the profit before tax of Zenith Bank Plc. However, minimum rediscount rate was found to have significant effect on the profit before tax of the bank. The paper concluded that a good number of monetary policy instruments do not impact significantly on profitability of commercial banks in Nigeria. The paper recommended that management of commercial banks in Nigeria should look beyond monetary policy instruments to enhance their profits.

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General) L Education > L Education (General)
Divisions:	Faculty of Management and Social Sciences
Depositing User:	GOUNI ICT
Date Deposited:	24 May 2018 14:39
Last Modified:	07 Aug 2018 10:24
URI:	http://eprints.gouni.edu.ng/id/eprint/182

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