APPRAISAL OF MONETARY POLICY IMPLEMENTATION IN NIGERIAN BANKS

TABLE OF CONTENTS

Title page                                                         i

Certification                                                     ii

Dedication                                                       iii

Acknowledgement                                            iv-v

Table of contents                                             v

CHAPTER ONE

1.0   Introduction                                             1

1.1   Statement of the Problem                        3

1.2   Objectives of the Study                            4

1.3   Significance of The Study                                4

1.4   Definition of Terms.                                 5

1.5   Limitation of The Study                           7

1.6   Plan of The Study                                    7

CHAPTER TWO

2.0   Literature Review                                     9

2.1   Conceptual Definition                              9

2.2   Monetary Policy in Nigeria                               14

2.3   Framework For Monetary Target In Nigeria               21

2.4   Inflation Targeting                                           24

2.5   The Rationale For Inflation Targeting               25

2.6   Requirment For Inflation Targeting                  26

CHAPTER THREE

3.0   Research Methodology                                     30

3.1   Sources of Data                                               30

3.2   Population of The Study                                  31

3.3   The Sampling Techniques                                       31

CHAPTER FOUR

4.0   Data Presentation And Analysis                       32

4.1   Data Presentation                                            32

4.2   Data Analysis                                                   33

CHAPTER FIVE

5.0   Summary Conclusion and Recommendations 39

5.1   Summary                                                         39

5.2   Conclusion                                                      41

5.3   Recommendations                                           42

        References                                                       44   

CHAPTER ONE

1.0   INTRODUCTION

        An appraisal of the banking industry show that the industry is determined by several factors, but the most influencing of all is director factor of regulatory frame work, under which the industry operator. This framework can be divided into two broad aspects of monetary and banking.

In all economics, the conduct of both policies are normally. Originated through banking institution who play an international process, the role of bringing lender and borrows together. Though in this process, the central bank play a crucial role in determine the price of money therefore monetary policy is important by its own right from the past view of monetary economics and policy maker and in term of its impact on the economy.

Of all the tools available to the government for directing the course of economy, monetary policy has proven to be the most feasible instrument for achieving medium term stabilization objectives (CBN guideline 2003) monetary policy formulation and implement emerge on a critical government responsibility if the economy is not to be a strayed. Policy are not made for their own sake, they are directed toward achieving a desired goal over a period of time

        Generally the primary objective of monetary policies concern with the discretionary control of monetary supply by the monetary authority in order to achieve the stated economy goals. The government uses the macroeconomic stabilization policy which is broad term that embraces a target family of economic policies.

These polices are designed in an attempt to change the trend of some monetary valuable in particular direction so as to include the desired behavioral change in monetary policy. The banks role is to conduct appropriate monetary policy that is consistent with the main economic objective of achieving real growth in gross domestic product low inflation rate and a stable balance of payment position. This is irrespective of whether the direct or indirect approach is put in place to control money and credit.

In this regard the CBN determine the amount of money supply that is consistent and manipulates the monetary instruments, instrument at its disposal in order to achieve the stated objective because there is a belief that there is a relationship between the variable and monetary variable.