IMPACT OF FINANCIAL INTERMEDIATION ON MONETARY POLICY EFFECTIVENESS IN NIGERIA

Files

27.pdf (2.13 MB)

Date

2018-12-09

Authors

Journal Title

Journal ISSN

Volume Title

Publisher

Department of Public Administration, Nasarawa State University, Keffi.

Abstract

The need to be able to assess properly the extent of the relationship between financial intermediation and monetary policies of the Central Bank of Nigeria (CBN) gave rise to the study on 'impact of Financial Intermediation on Monetary Policy Effectiveness in Nigeria': It is evidently clear that financial systems world over are heavily regulated in order to achieve the macroeconomic objectives of the government. Nigeria is not an exception. For this reason, the 'Researcher carried out an in-depth study of the relationship between the dependent and independent variables of the study in an attempt to verify that financial systems are not only heavily regulated but also that monetary policy effectiveness is achieved. The source of data is from the CBN's statistical bulletin and therefore secondary in nature. The data collected wcs&r£. analysed using regression analysis. The results of the analysis showed that cash reserved ratio and interest rate have statistical and significant influence on demand deposit and loans and advance, respectively. Consequently, it was concluded and recommended that the Central Bank (CBN) and the Financial Intermediaries are not only to ensure that the effectiveness of monetary policies is maintained at all times but also that the issue of Financial Intermediation should be accorded priority in the agenda during the Bankers' committee meetings.

Description

Keywords

Financial Intermediation, Monetary Policy, Loans and Advances, Interest Rate, Demand Deposit and Cash Reserve Ratio

Citation

Gilchrist, S., Zakraj.ek, E., 2012b. Credit supply shocks and economic activity in a financial accelerator model. In: Blinder, A. S., Lo, A. W., Solow, R. M. (Eds.), Rethinking the Financial Crisis. Russell Sage Foundation, pp. 37.72. Goodfriend, M., McCallum, B. T., 2007. Banking and interest rates in monetary policy analysis: A quantitative exploration. Journal of Monetary Economics 54 (5), 1480.1507. Guerrieri, L., lacoviello, M., 2013.Collateral constraints and macroeconomic asymmetries. International Finance Discussion Papers 1082, Board of Governors of the Federal Reserve System (U.S.). Flaltenhof, S., Lee, S. J., Stebunovs, V., this issue. The credit crunch and fall in employment during the great recession. Journal of Economic Dynamics and Control, (in this issue). Flanson, S. G., Stein, J. C., 2012. Monetary policy and long-term real rates. Finance and Economics Discussion Series 2012-46, Board of Governors of the Federal Reserve System (U.S.). Fie, Z., Krishnamurthy, A., 2014.A macroeconomic framework for quantifying systemic risk. Working Paper 19885, National Bureau of Economic Research. Flolmstrom, B., Tirole, J., 1997. Financial Intermediation, Loanable Funds, and the Real Sector. The Quarterly Journal of Economics 112 (3), 663.91.

URI

https://keffi.nsuk.edu.ng/handle/20.500.14448/2615

Collections

Articles