Impact Of Monetary Policy On Commercial Banks Performance In Nigeria (A Study Of Selected Commercial Banks)

ABSTRACT

The study evaluated the impact of monetary policy on commercial hank performance in Nigeria with respect to five selected commercial banks from 2008-201 7. Collected data was analyzed using Ordinary Least Squares 'OLS,) estimates with E-view package. The findings indicated that, monetary policy rate ('discount rate) have positive and significant impact on profit  tax of commercial banks, relationship between Lending Interest Rate and Profit 2,/lcr Tax of Commercial Banks is positive and significant, also, there is positive and. significant relationship between Liquidity ratio (current ratio) and Pro/li a/icr Tax f Commercial Banv, while the relationship between money supply and Profit a Tax of commercial Banks is positive anti insignificant. The study concludes that, monetary policy has positive and significant impact on commercial hank performance in Nigeria. This study there fiire recommends that, flu)fletary authority and central hank should implement monetary policy instruments that will he effectivee in generating and stimulating the desired level of pro/liability in the banking sector. Secondly, Monetary authority and central hank should always set good lending interest rate toward commercial banks in other not to qfi'ect their lending ability and equally affecting profit  after tax positively. Finally, Commercial banks' should balance off their borrowing and deposit rates since these rates set by central bank of Nigeria affect their financial performance.