About Us   |   Contact Us   |  
Submission  

Monetary Policy Shocks and Health of the Banking Sector in Nigeria

DOI : https://doi.org/10.36349/easjebm.2022.v05i08.006
PDF
HTML
XML

This study examines the reaction of banking sector health to the shocks of monetary policy in Nigeria using a monthly time series dataset from January 2010 to December 2021. In the estimate instruments of monetary policy such as monetary policy rate, open buyback, treasury bills, liquidity ratio and cash reserve ratio were used while banking sector health was measured as loan-to-asset-ratio and loan-to-deposit ratio. In addition, the impulse response function was used as the technique of analysis. The results of this study reveal that monetary policy rate and cash reserve ratio impulse adverse shocks to banking sector health measured as a loan-to-asset ratio, while open buyback, treasury bills, and liquidity ratios have caused a positive shock to banking sector health. Differently, from the loan-to-deposit ratio, this study shows that shocks to the monetary policy rate, open buyback, and cash reserve ratio have transmitted negative shocks to the health of the banking sector. In addition, shocks from treasury bills and liquidity ratios have led to a positive reaction from the side of banking sector health. To make the banking sector so strong, the central bank should reduce the monetary policy rate and cash reserve ratio, and increase treasury bills and liquidity ratio.

TOP EDITORS

OPEN ACCESS JOURNALS

Dr. Afroza Begum

Lecturer, Dept. of Pharmacology and Therapeutics, Shaheed Monsur Ali Medical College & Hospital, Uttara, Dhaka-1230, Bangladesh

BEST AUTHOR

Of The Month

TRACK YOUR ARTICLE

Enter the Manuscript Reference Number (MRN)
Get Details

Contact us


EAS Publisher (East African Scholars Publisher)
Nairobi, Kenya


Phone : +91-9365665504
Whatsapp : +91-8724002629
Email : easpublisher@gmail.com

About Us


EAS Publisher (East African Scholars Publisher) is an international scholar’s publisher for open access scientific journals in both print and online publishing from Kenya. Its aim is to provide scholars ... Read More Here

*This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

© 2020, All Rights Reserved | SASPR Edu International Pvt. Ltd.

Developed by JM