Development: Unconventional Monetary Policy on Bank Performance in Nigeria

Abstract

The banking system plays an important role in the Environment and Development. This literature explored the influence of unconventional monetary rule on bank financial efficiency, with a vision to analysis to what degree unorthodox monetary expansion would impact deposit money banks’ performance using Nigeria as a case study for the developing economies in Africa from (2007-2017). Unorthodox monetary expansion is evaluated via assets of the apex bank to GDP ratio and deposit insured during the period. Using the random effect regression panel data analysis, the findings indicate that unconventional monetary policy is of a negative effect on deposit money bank performance. Further analyses show a negatively expressive relation amid unconventional pecuniary rule and Credit Money Banks performance with regards to deposit insurance coverage. On this basis, this literature principally recommends the apex bank of Nigeria to enact monitory regulations aiming to examine the response of credit finance banks’ performance to unconventional measures of monetary policy. The Unconventional Monetary Policy plays an important role in Development.