Impact of Money Market Instrument on Bank Performance in Nigeria

Student: Blessing Salowor (Project, 2025)
Department of Accounting
Delta State University, Abraka, Delta State

Abstract

The study examined the empirical analysis on the impact of money market instruments on bank performance. The study employed panel data from 2012 - 2021 and used commercial paper, open market operation, and treasury certificates as independent variables, with bank performance as the dependent variable. Secondary data was collected from CBN statistical Bulletin. The study adopts ex-post facto method of research. The data was Analyze using panel regression. The findings revealed that: Commercial paper has a significant positive impact on bank performance, Open market operation does not have a significant impact on bank performance,Treasury certificates do not have a significant impact on bank performance.Based on the findings of the study it's recommended that Bank managers and policymakers should prioritize investments in commercial paper as a means of improving bank performance, Banks should reevaluate their use of open market operation and treasury certificates, and consider alternative investments that may have a more significant impact on performance and Banks should consider diversifying their investment portfolios to include other instruments that may have a positive impact on performance.

Keywords
impact money market instrument performance nigeria
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