Impact of fiscal and monetary policies in profitability of banks in Nigeria Department: Banking and Finance By: Champion1152 Project ID: 7536 Rating: (5.0) votes: 1Rate this project12345 Price:₦3000 Get the Complete MaterialAbstractThe study examined the effect of monetary and fiscal policy on bank profitability in Nigeria from 2001 through 2021. The study modeled bank profitability measured by return on equity (ROE) as a linear function of the monetary and fiscal policies, measured by monetary policy rate (MPR), cash reserve ratio (CRR) and total of government expenditure (TGEX). Data were collected from the Central Bank of Nigeria Statistical Bulletin and analysed by regression estimated by the ordinary least square approach. The findings show that all the independent variables except government expenditure were negatively related to bank profitability in Nigeria. The foregoing indicates that the cash reserve ratio, monetary policy rate and total government expenditure are good instruments for determining bank profitability in Nigeria. Although government expenditure showed a contrary relationship to expectation, nevertheless, the independent variables are adjudged average predictors of economic growth rate with R2 of 0.51. Also going by analysis that the model's overall p-value is 0.006, it was concluded that fiscal policy and monetary policy are significantly effective in determining bank profitability in Nigeria and recommended that Monetary authority should regulate the monetary policy effect on banks by ensuring that monetary policy rate, which is the base lending rate strongly spur improvement in bank operating profitability so that the present negative effect of monetary policy rate can be reversed. Keywords: Monetary policy, Fiscal policy, Bank profitability, Government expenditure...Preview Download Preview +Other Banking and Finance project topics and materials you might be interested in»The role of central bank of Nigeria (CBN) in the development of Nigeria financial sector»Appraisal of the economic implication of electronic banking in Nigerian banks (A case study of diamond bank)»The impact of strategic planning on banks performance in Nigeria (A case study of united bank for Africa plc)»Evaluation of the impact of liquidity management on banks performance in Nigeria ( A case study of UBA )»The roles of central bank of Nigeria in the prevention of bank failure or liquidation (A case study of central bank of Nigeria 2005-2009)»The role of financial institutions in promoting banking habit and saving capital formation in Nigeria»The effect of electronic banking on fraud reduction in bank (A case study of access bank plc)»The effectiveness of monetary policy measures in controlling inflation in Nigeria»Problems and challenges facing finance houses in the Nigerian economy ( A case study of mortgage bank owerri )»The role of deposit money bank in Nigeria in economy development in Nigeria - a case study of Access Bank Plc»Motivation as a way of reducing fraud in banking industry ( A case study of UBA and Fidelity bank )»The impact of insurance industry on the economic growth of Nigeria (A case study of nicon and hallmark insurance companies 2005-2009)»Identification and management of bad debts in Nigeria commercial banks(A case study of UBA plc)»The contribution and effect of computer to modern day banking in Nigeria (A case study of zenith bank and first bank plc)»The use of accounting information in assessing control and performance in an organization (A case study of first bank of Nigeria owerri)