ATTENTION:
BEFORE YOU READ THE CHAPTER ONE
OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE
PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL
INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS
PAGE. OR YOU CAN CALL: 08068231953, 08168759420
THE IMPACT
OF MONETARY AND FISCAL POLICIES ON THE PERFORMANCE OF COMMERCIAL BANKS
ABSTRACT
This project
work is focused on the impact of monetary and fiscal policies on the
performance of commercial banks, First Bank of Nigeria Plc 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 is question 9 of the
research for hypothesis. The null hypothesis was accepted for the hypothesis.
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.
CHAPTER ONE
1.0
INTRODUCTION
Every
successful nation and its activities is a function of fine tuning the necessary
policy measures geared towards the achievement of the stated objective. In this
context monetary and fiscal policy measure shall be critically discussed as
regards its impact on the activities of commercial banks. This impact is of two
way traffic since it can lead to economic recession on economic boom, for
instance when the policy measure is to withdraw the volume availability,
direction of money and credit in the economy, this could negatively influence
the credit advance to the profit making ability of the commercial banks and
this could force liquidation on the bank.
Fiscal
policy measure which as a matter of that is the use of government expenditure
and taxation to influence the country’s economic activities. If not well fine
tuned can still spell doom for the commercial banks. The aim of this research
project is to review some of the key policy measures which could be
expansionary or concretionary adopted over the focus. Their impact on
commercial banks activities and suggestion of area where further policies
should be focused to enhance commercial activities. The subject matter has been
arranged in a way it will be readily understood and also provided some basis
for useful lesson which will serve as a guide for future policy design.
1.1
BACKGROUND OF THE STUDY
The central
bank of Nigeria (CBN) started with effect from 2002 fiscal year, adopt a medium
term perspective monetary policy framework. Unlike earlier program which were
designed for one year period beginning January 2002 to December 2003. The shift
is in recognition of the fact that monetary action affects the ultimate
objectives of policy with a substantial lag. Thus, the current shift will free
monetary policy implementation from the problem of time inconsistency and
minimize over reaction due to temporary shock.
This
circular outlines the monetary, credit, foreign trade and exchange policy
guideline applicable to bank and other financial institution in Nigeria in
2002/2003. In particular, monetary and credit policy will be implemented within
the framework of the medium term programme. the guidelines will be subjected to
fine turning in the light of development in monetary and financial market
conditions, as well as the performance of the economy, which could be conveyed
to the relevant institutions in supplementary circulars as necessary . the
circular contains four major sections and four appendices following the in
production, which is section 1, section 2 review the development in the economy
and policy environment in 201 and thus 2002/2003. Section 3 outlines the
monetary and credit policy financial institutions in fiscal 2002, while the
foreign trade and exchange policy measures are highlighted in section 4. The
appendices contain prudential guidelines for licensed banks and reporting
format.
1.2
STATEMENT OF THE PROBLEM
Among the factors
responsible for the ineffectiveness of fiscal and monetary policy measure, has
been the lack of co-ordination between monetary and fiscal authority on
compliance with the fiscal and monetary policy directives coupled with the
ambiguity of the policy objectives which has made it difficult for the policy
implementation to grasp the crux of the policy.
Perhaps the
monetary serious restrain on the impact of fiscal and monetary policies on
commercial banks activities are:
Shortage of
access liquidity problem
Inadequate
capital
Problem of
shortage of excess cash
Inconsistent
discount and interest rate policy
Uncontrolled
extension of credit to different sector
Inadequate
means of mopping excess liquidity
Poor reserve
ratio with CBN.
1.3 OBJECTIVES OF THE STUDY
If monetary
and fiscal policy have had any influence on the profit of Central Bank of
Nigeria and also on its loans and advances, over the study period.
To make
necessary recommendation that could improve monetary and fiscal policy in
Nigeria.
To determine
the instrument of monetary and fiscal policy and their individual roles as a
control measure on commercial banks.
Finally, to
determine the effect of monetary and fiscal policies on commercial bank.
1.4 SIGNIFICANCE OF THE STUDY
Today, it is
great important in the study of the impact of monetary and fiscal policies on
commercial banks to different sector of our economy. This time banking
activities have occupied an enviable role in the economic and social
development of our nation.
The study
has wealth of fiscal, statistical and discursive information on the meaning of
monetary and fiscal policies and its effect on commercial banks. The banking
industry will benefit from the study since it is set out to demonstrate to CBN
and commercial houses, the consequence and implication of these policies. This
is used to demonstrate to the investing public, the effect of various
instrument of monetary and fiscal policies on commercial banks and how the
government uses them to encourage or discourage economic and social activity.
The solution
to the identified problem will be significant to monetary and fiscal policy
that will render their policies objective unrealizable. It will also be
significant to banks, finance houses and the industrialist who are affected by
government policies.
1.5 RESEARCH
QUESTION
How can
monetary and fiscal policies have influence on the profit of first bank plc
Nigeria Abuja?
When is it
necessary to make recommendation that could improve monetary and fiscal policy
in Nigeria?
How can one
determine the instrument of monetary and fiscal policy and their individual
roles as a control measure on commercial banks?
To what
extent can monetary and fiscal policies influence the performance of commercial
banks?
1.6 RESEARCH HYPOTHESIS
This section
would include some hypothesis which would be tested during the course of
research there will be two main hypothesis. Assume negative statement to be the
Null hypothesis (H0), while the positive statement to be the alternative
hypothesis (Hi) they are as follows:
H0: Cash
reserves ratio, interest rate policy and minimum rediscount rate do not have
any influence on the loans and advance on commercial banks in Nigeria.
Hi: Cash
reserves ratio, interest rate policy and minimum rediscount rate have any
influence on the loans and advance on commercial banks in Nigeria.
1.7 SCOPE OF THE STUDY
This
research centre on the impact of monetary and fiscal policies on commercial
banks. It is based on monetary and fiscal policy as it obtainable only in our
Nigeria context the object of the study is the commercial banking system in
Nigeria.
As the say
“There is no raise without thorn” this study is not without some problem.
Time
constrains: This work not exhaustive as there was no time to travel to
different branches to collect data.
Unfriendly
attitude of respondent: Some employee of CBN to who question were asked
declined interest shunned every attempt to persuade them.
1.8 LIMITATION OF THE STUDY
This
research will face a lot of constraint in the course of the research. Firstly,
the inadequate time is the most constraint encountered. Considering other
academic work which the research have to attend to as well as other pressure.
1.9
DEFINITION OF RELEVANT TERMS
FISCAL
POLICY: Broadly defined as the use of government expenditure and taxation to
influence the country’s economic activities.
Monetary
Policy: According to Uzoaga, it is the expansion and contraction of the value
of the money in emulation for the specific purpose of achieving therefore aims
at influencing the cost and availability of credit or alternatively at
controlling the supply of money with a view to counter act undesirable trend in
the economy.
Taxation: It
is a compulsory level by the government (Federal, state or local) on the
income, profit, wealth or consumption (through the trustee or execution) and
corporate organizations. (registered under company and allied matters) Act
1990.
Open Market
Operation(OMO): This refer to the purchase or sale of securities in the stock
exchange or money market by the central banks to expand or contract the volume
of credit with the objective of increasing (reducing) the cost and availability
of credit.
Federal Fund
Rate: This is the rate that commercial banks charge each other when the loan
excess reserve usually on day basis.
Liquidity
Traps: This is defined as a case of where the interest rate fall so low that
individual and business wish to hold any new money created in the banking
system as speculative balances.
HOW TO GET THE FULL PROJECT
WORK
PLEASE, print the following
instructions and information if you will like to order/buy our complete written
material(s).
HOW TO RECEIVE PROJECT
MATERIAL(S)
After paying the appropriate
amount (#5,000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1)
Your project topics
(2)
Email Address
(3)
Payment Name
(4)
Teller Number
We
will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account
Name: AMUTAH DANIEL CHUKWUDI
Account
Number: 0046579864
Bank:
GTBank.
OR
Account
Name: AMUTAH DANIEL CHUKWUDI
Account
Number: 2023350498
Bank:
UBA.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
AFFILIATE
Comments
Post a Comment