Monetary Policies and the Achievement of Bank Profit Objective

IF 1.7 Q3 BUSINESS, FINANCE

Journal of Central Banking Theory and Practice Pub Date : 2021-05-01 DOI:10.2478/jcbtp-2021-0020

A. Omankhanlen, Noah Ilori, A. Isibor, L. U. Okoye

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引用次数: 10

Abstract

Abstract This study examined the nexus between monetary policy and the achievement of a bank’s profit objective. There have been lots of arguments about the benefits of monetary policy implementation on deposit money bank’s operations, since the policies have been seen to impact on their performance. This study was carried out to establish the influence of variables like Liquidity Ratio, Interest and Money supply (M2), which are used as monetary policy instruments, on deposit money bank profitability objective. The study covers the period from 2002-2019. The Auto Regressive Distributed Lag and Error correction model were adopted in the analysis of the data. The study revealed that there was a positive long run relationship between Liquidity Ratio and deposit money bank’s profitability; there also existed a negative long run relationship between interest rate and deposit money bank profitability; lastly, there existed a positive long run relationship between Money Supply (M2) and deposit money bank’s profitability. Based on the findings, monetary authorities should put in place measures for Liquidity ratio, interest rates and M2 implementation to aid deposit money banks operations in the achievement of their profit objective.

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货币政策与银行盈利目标的实现

摘要本研究考察了货币政策与银行利润目标实现之间的关系。关于货币政策实施对存款银行业务的好处，有很多争论，因为政策已经被视为对存款银行业绩的影响。本研究旨在建立作为货币政策工具的流动性比率、利率和货币供应量(M2)等变量对存款货币银行盈利目标的影响。该研究涵盖了2002年至2019年的时间。数据分析采用自回归分布滞后和误差修正模型。研究发现，流动性比率与存款银行盈利能力之间存在长期正相关关系;利率与存款银行盈利能力也存在长期负相关关系;最后，货币供应量(M2)与存款货币银行的盈利能力之间存在长期正相关关系。根据调查结果，货币当局应制定流动性比率、利率和M2实施措施，以帮助存款银行实现其盈利目标。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Central Banking Theory and Practice BUSINESS, FINANCE-

CiteScore

2.80

自引率

57.10%

发文量

审稿时长

7 weeks

期刊介绍： Journal of Central Banking Theory and Practice is a scientific journal dedicated to publishing quality papers and disseminating original, relevant and applicable economic research. Scientific and professional papers that are published in the Journal of Central Banking Theory and Practice cover theoretical and practical aspects of central banking, monetary policy, including the supervision issues, as well as banking and management in central banks. The purpose of the journal is to educate the general public about the key issues that the central bankers globally face, as well as about contemporary research and achievements in the field of central banking theory and practice.