Monetary Policy and Profitability of Nigerian Deposit Money Banks
This study explored the impact of monetary policy on the profitability of Nigerian deposit money institutions. In this study, an expo-facto research design was used. 13 DMBs listed on the Nigeria Exchange Group from 2014 to 2021 made up the study's sample. Purposive sampling was used to choose the sample size of 10 banks. Data was gathered from secondary sources using the banks' publicly available financial filings. Both descriptive and inferential statistics were used to analyze the data. The investigation's findings demonstrated that though EXR had a substantial adverse impact on PBT, CRR and MS had a considerable favorable impact. The outcome also showed a favorable and substantial correlation between CIR and LIQ. The study came to the conclusion that banks' PBT and CIR rise when financial instruments are introduced. Therefore, it was advised that bank management develop policies to support their financial objectives and maintain optimal liquidity, which will prevent idle cash or bank cash out. The Central Bank should also establish a CRR to promote the expansion of credit and money supply, which will increase the profit. Keywords: Monetary policy, Cash Reserve Requirement, Interest Rate, Exchange Rate, Liquidity.
Keywords: Monetary policy, Cash Reserve Requirement, Interest Rate, Exchange
Citation: Oladejo, T.M., Akinola, A.O., Busari, R.R., & Aderibigbe, S.O. (2023). Monetary Policy and Profitability of Nigerian Deposit Money Banks. International Journal of Innovative Research in Accounting and Sustainability, 8(3), 115-125.