Impact of qualitative monetary policy on performance of deposit money banks in Nigeria

This study examined the impact of monetary policy tools on the performance of deposit money banks in Nigeria. The study sought to evaluate the effect of money supply on the performance of Deposit Money Banks in Nigeria; the significant impact of monetary policy rate on Deposit Money Banks' Performance; to investigate the influence of Cash reserve ratio on Deposit Money Banks' Performance. The study is predicated on the Classical theory, Keynesian theory and Neo-Classical theory. The secondary data were obtained from the Central Bank of Nigeria Statistical Bulletin. The multiple regression analysis i.e. Ordinary least square(OLS) was used to test the impact of monetary policy tools on the performance of deposit money banks in Nigeria. The result shows that the monetary policy variables have positive relationship on performance of Nigerian Deposit Money Banks except Money Supply and Liquidity Ratio. The study concluded that monetary policy tools have no significant effect on the financial performance of commercial banks in Nigeria. The study then recommends that commercial banks should put more emphasis on the internal factors to financial performance. These internal factors include capital adequacy, asset quality, management efficiency, earnings ability and liquidity management.