The Effects Of Monetary Policy Instruments On Private Sector Credits By Banks In A Globalized Economy

ABSTRACT 

This study evaluated the effects of monetary policy instruments on private sector credits by banks in a globalized economy covering a period of twenty years, from 1986-2005. Six major monetary policy instruments namely cash reserve ratio, liquidity ratio, interest rate; minimum rediscount rate, treasury bill rate and money supply were employed explanatory variables while bank total loans and advances serves as the dependent variable or bank credit. Adopting the multiple regression model, the study revealed that monetary policy exhibited a significant relationship with bank credit. However the treasury bill as a monetary policy instrument exerts a significant effect on the level of bank credit. On the basis of this, the study recommends, among others the use of first, the treasury bill to control the level and direction of flow of credit from the banks to the private sectors. Also, there is need to e more consistent in the formulation and implementation of monetary policies in Nigeria in order to achieve desirable target, Key words: Bank credit, monetary policy prudent guidelines. Project fine monetary policy instruments, treasury bills.  

Keywords: Export Finance, Monetary Policy, Post Shipment Finace, Financial Instruments, Documentary Credit, Economic Reforms, Deferred Credits. 

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APA

OGUOMA, E (2021). The Effects Of Monetary Policy Instruments On Private Sector Credits By Banks In A Globalized Economy. Afribary. Retrieved from https://track.afribary.com/works/the-effects-of-monetary-policy-instruments-on-private-sector-credits-by-banks-in-a-globalized-economy

MLA 8th

OGUOMA, ESTHER "The Effects Of Monetary Policy Instruments On Private Sector Credits By Banks In A Globalized Economy" Afribary. Afribary, 30 Apr. 2021, https://track.afribary.com/works/the-effects-of-monetary-policy-instruments-on-private-sector-credits-by-banks-in-a-globalized-economy. Accessed 28 Dec. 2024.

MLA7

OGUOMA, ESTHER . "The Effects Of Monetary Policy Instruments On Private Sector Credits By Banks In A Globalized Economy". Afribary, Afribary, 30 Apr. 2021. Web. 28 Dec. 2024. < https://track.afribary.com/works/the-effects-of-monetary-policy-instruments-on-private-sector-credits-by-banks-in-a-globalized-economy >.

Chicago

OGUOMA, ESTHER . "The Effects Of Monetary Policy Instruments On Private Sector Credits By Banks In A Globalized Economy" Afribary (2021). Accessed December 28, 2024. https://track.afribary.com/works/the-effects-of-monetary-policy-instruments-on-private-sector-credits-by-banks-in-a-globalized-economy