MONETARY POLICY AND BANKING PERFORMANCE IN NIGERIA
The research study is directed towards a monetary policy and banking performance in Nigeria. The research investigates the effectiveness of monetary policy on the bank's profitability by using first bank of Nigeria: as a case study. The structure of commercial bank's general policies and principles.
The research composition was based on secondary data. The data collected from various sources was statistically analyzed with the' multiple regression analysis.
The study found out that there is positive relationship among various economic variables including gross domestic product, interest rate, exchange rate and money supply.
The study recommends that government should pursue sound and more coordinated monetary policy. The growth rate of money supply should be kept at a level consistent with real gross domestic product (GDP) growth rate so that it will not affect the position of exchange rate adversely. The study also recommends that the government and the central bank of Nigeria should be cautious of their intervention in the Foreign Exchange Market to ensure non-violent fluctuation of the exchange rate as too much interference breeds uncertainty which' may hamper the realization of the achievement of monetary of monetary targets.