EFFECT OF MONETARY AND FISCAL POLICY ON THE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

📄 Project Abstract

Deposit Money Banks are very important in an economy as they mobilize savings for productive investments and facilitating capital flows to various sectors in the economy, thus stimulating investments and increase productivity. The operations of Deposit Money Banks are guided by monetary policy actions under the Central Bank of Nigeria directives. The purpose of this study was to investigate the effect of monetary and fiscal policies on the performance of Deposit Money Banks in Nigeria. Deposit Money Banks are profit-motivated institutions and their response to monetary and fiscal policies largely influences their profit margins. The study analyzed the response of five deposit money banks performance to monetary and fiscal policies concerning their performance from 2009 to 2018. Deposit rate (DR), foreign exchange rate (FEXR), Money supply (MS), Annual budget (AB) are used as proxies for monetary and fiscal policies. Return on Asset (ROA) is used to represent deposit money banks perform...