THE IMPACT OF MONETARY POLICY ON BANKING INDUSTRY(A CASE STUDY OF SOME SELECTED BANKS FROM 1984-2004)

Money is not neutral it is a contributing factor to the greatest economic problem any nation has to face the recurrent cycle of property and depression. It would be going to for to accuse money of being the cause of business cycles but without money business cycles as the know then would be inconceivable the simple exchange mechanism used in a barter economy could earthy get out of order an the way our highly complex financial machinery does just as business cycles (banks) could not exist without money so they could not exist without monetary policy to regulation its operations The aim of this work is to find out the impact of the monetary policy on the growth of banking industry on Nigeria the samples use in this work were colleted from 12bank in Nigeria covering a period of 20 years four hypothesis were stated to test the impact of the monetary policy on banks growth in Nigeria statistical tools used for the testing of the hypothesis ate data collection through questionnaire for hypothesis four and one Nevertheless the T test hypothesis was used for the second hypothesis and chi-square was used to test hypothesis one four analyzing the study it was found that the monetary policy has significance impact on the of banking industries in Nigeria. It was also noted that some of the policies are not practicable so respondents suggested that they should be abolished. In synopsis the study reveals that the lending rates of banks as determined by certify guidelines of the central banks of Nigeria have impact on the profitability of banks. This goes a long ways to from the regulatory authorities and the government to be on guard since there are advantages and disadvantages of the policy instrument