EFFECT OF FISCAL AND MONETARY POLICY ON COMMERCIAL BANKS AND OTHER FINANCIAL INSTITUTION

EFFECT OF FISCAL AND MONETARY POLICY ON COMMERCIAL BANKS AND OTHER FINANCIAL INSTITUTION

ABSTRACT

This project work is focused on the impact of monetary and fiscal policies on the commercial banks activities, central Bank of Niger Abuja was the case study, in carrying out this study, the instruments employed in obtaining the data used for the study was the questionnaire, a total of 50 questionnaires were issued out which 45 were returned fully and completed and 5 were declared void. These questionnaire responses were analyzed using percentages and chi-square. The hypothesis formed in chapter one was tested using 5% confidence with chi-square. The question used to test the hypothesis were question 9 and 17 of the research for hypothesis. The null hypothesis was accepted for hypothesis one and two. The summary of the finding revealed that, the monetary policy instrument was statistically insignificant. There is no relationship between the profit of the commercial bank. Based on the analysis, the researcher proffered the following in commendation. The central bank of Nigeria should be independent. The problem of excess liquidity in the banking industry should be addressed through liquidity map up exercise.