Impact of Monetary and Fiscal Policies on the Performance of Deposit Money Banks in Nigeria

Student: Ofejiro Juliana Oghenekaro (Project, 2025)
Department of Banking and Finance
Auchi Polytechnic, Auchi, Edo State

Abstract

This study examined the impact of monetary and fiscal policies on the performance of deposit money banks in Nigeria from 2007-2023. The objectives of this study are to determine the effect of fiscal policy instrument, monetary policy instrument and exchange rate on the performance of deposit money banks in Nigeria. The data were sourced from Central Bank Statistical Bulletin, 2022. The Ordinary least square regression technique was used for the analysis. The result of the study indicates that government expenditure as a fiscal policy instrument and monetary policy instrument have positive significant effect on Return on Asset of deposit money banks while exchange rate has negative significant effect on Return on Asset of deposit money banks. It is recommended among others that the government should increase its capital expenditure to ensure adequate liquidity in the banking industry to enhance performance of deposit money banks

Keywords
deposit money banks monetary fiscal performance policy instrument nigeria effect
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