IMPACT OF QUANTITATIVE TOOLS OF MONETARY POLICY ON THE PERFORMANCE OF DEPOSIT OF COMMERCIAL BANKS IN NIGERIA

ABSTRACT: This study focused on examining the effects of quantitative policy instruments on the deposit performance of commercial banks in Nigeria, namely First Bank of Nigeria Plc and First Inland Bank Plc. In order to guide the trajectory of the economy, government authorities utilise several economic policies, including monetary policy. Banks serve as the intermediary institutions through which the government executes monetary policy, and in the course of this execution, banks are subject to various influences.  This study aims to investigate the impact of monetary policy on the performance of commercial banks within a specific time frame. It seeks to determine the extent to which monetary policy influenced the performance of these banks, if indeed it did. Therefore, the research will also aim to investigate if monetary policy has had an impact on the loans and advances, as well as the profitability, of First Bank of Nigeria Plc and First Inland Bank Plc. The utilisation of basic percentages for data analysis and the application of the chi-square test for hypothesis testing will be employed. The preferred monetary policy instruments that I would like to utilise include interest rates, cash reserve ratios, minimum rediscount rates, liquidity ratios, and foreign exchange rates. In summary, the implementation of monetary policy has had a beneficial impact on the deposit performance of commercial banks, contributing to the stabilisation of the economy.