The Impact of Money Market on Economic Growth of Listed Deposit Money Banks in Nigeria

ABSTRACT This study investigated the impact of money market on economic growth of listed deposit monet banks in Nigeria, using 2013 to 2022 cross-sectional data of listed deposit money banks with both national and international authorization on the Nigerian Exchange Group. Specifically, this study examined the impact of treasury bills, commercial papers and bankers’ acceptance (measures of money market) on economic growth (proxied by gross domestic product). Data were extracted from secondary sources such as the Central Bank of Nigeria (CBN) statistical bulletin and National Bureau of Statistics (NBS) publications for the period under study and collected data were analyzed using multiple regression with the aid of E-views 10. The entire deposit money banks with both national and international authorization, totaling 19 represented the population size, as well as sample size of the study. Findings of the study revealed that there is a statistically positive and significant impact of money market instruments on gross domestic product of listed deposit money banks in Nigeria. Therefore, it was concluded that money market has a significant and positive impact on economic growth of the financial sector of Nigeria. It was therefore recommended that, among others, all the three money market instruments used in this study should be sustained and strengthened as major instruments for national economic development through appropriate monetary policy measures.