Home » Banking and Finance » EFFECTIVENESS OF CREDIT GUIDELINES AS AN INSTRUMENT OF MONETARY POLICY IN NIGERI...
EFFECTIVENESS OF CREDIT GUIDELINES AS AN INSTRUMENT OF MONETARY POLICY IN NIGERIA
Sold By: Joe Project Store | Item Type: Project Material | Report this? | Attributes: 44 pages | 1-5 chapters | Amount: ₦5,000 | 2 orders. | Marked useful: 6,501 times
Delivery: Within 24 hoursEFFECTIVENESS OF CREDIT GUIDELINES AS AN INSTRUMENT OF MONETARY POLICY IN NIGERIA.
CHAPTER ONE:
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVE OF THE STUDY
1.4 SIGNIFICANCE OF THE STUDY
1.5 LIMITATION OF THE STUDY
REFERENCE
CHAPTER TWO:
2.0 REVIEW OF RELATED LITERATURE
2.1 GENERAL REVIEW
2.2 OBJECTIVE OF CREDIT POLICY GUIDELINES
2.3 INSTRUMENTS OF CREDIT GUIDELINES
2.4 CREDIT GUIDELINES “HISTORICAL
PERSPECTIVES
REFERENCE
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 SOURCES OF DATA
3.2 LOCATION OF DATA
CHAPTER FOUR
4.1 FINDINGS
CHAPTER FIVE
5.0 RECOMMENDATION AND CONCLUSIONS
5.1 RECOMMENDATION
5.2 CONCLUSIONS
BIBLIOGRAPHY
CHAPTER ONEINTRODUCTION
1.1 BACKGROUND OF THE STUDY
One important factor affecting the level of economic activities in any economy is change in supply. These changed affects directly the rate of spending by the citizen of the country. It is therefore, because of the economic importance of monetary that the monetary authorities has devoted time and resources towards money management with a view of reaping the benefits inherent therein.
The credit guideline, which is my topic of study, has formed the apex instrument used by monetary authorities in Nigeria to influence economic activities. The guidelines are informed of central bank of Nigeria monetary policy circulars prescribing sectoral and aggregate increase and decreasing in credits by the commercial and merchant banks.
According to Anyanwu J.A. (1998) the credit guidelines can be used to regulate the pace and content of economic in an economy. This involves authorities interference with the volume and direction of credit by the commercial and merchant banks to those sectors of the economy. This is why the government divided the economy into major sectors, the preferred or high priority sector and the less preferred or high priority sector and the less preferred or “others” sector.
The preferred sector comprises of agricultural industrial or manufacturing enterprises residential building construction, exports and essentials services sub-sectors.
The government has since the introduction of the credit guidelines in 1964, being urging banks to grant more credit facilities to this sector or order to boost the rate of economic development in the country. The less preferred sector of the economy also comprises of general commerce, government and “others”. Government also urges the banks to allocate less funds or exercise restraint in granting loans and advances to this sectors because of the affects it this sectors because of the affects it would have no the general price level.
Credit guidelines could also be regarded as an anti-inflationary techniques preventing the flow of funds to those sectors. Of the economy that are very sensitive to inflationary pressures.
According to Orjih .J. (1996): credit Guidelines is the policy sp0elt out by the central bank of Nigeria CBN, which regulates the credit creation of the commercial banks.
This control measure was adopted by the CBN for achieving the objectives of general economic policy. It changes the volume, quantity, availability cost and direction of money and credit in a given economy.
1.2 STATEMENT OF THE STUDY
i. Despite the efforts of the monetary authorities in order to achieve the objective of the guidelines/performance has fallen far below the projected level. Several factors could be identified to account for the failure to achieve these set objectives. These factors form the basis of the statement of the study and includes some of the credit guidelines measures are ineffective to tackle the economic problems.
ii. The problem of fining and operational lags, which exist between problem identification, formulation and implementation of credit guideline.
iii. Lack of complete autonomy on the part of the CBN to discharge its monetary function affectively.
iv. Lack of coordination in major problems and unbecoming activities of the government in fueling inflationary pressure in the economy.
1.3 OBJECTIVES OF THE STUDY
With the above problems in mind, the objectives of this study therefore are:
1. To highlight the general effects of the specific effects of credit guideline on the Nigeria economy in the terms of availability of funds.
2. To reseal how often and to what extent the guidelines, being the most popular weapon of central in Nigeria have been used by the monetary authorities to influence the credit base of the economy.
3. To reveal the effectiveness of central bank of Nigeria (CBN) in facing the banks to comply with the policy guidelines.
4. To show the effectiveness or otherwise of the credit guildelines in combating inflation in the economy. This will be revealed by the economy. This will be revealed by the movement of the price index.
5. To elaborate the salutation that calls for the use of credit guidelines as an alternative to general monetary weapons.
6. To show the impact of the credit guidelines has on the economic development of the country. The movement of industrial index will reveal this.
7. To make recommendations for the effective improvement of the credit guidelines in Nigeria.
1.4 SIGNIFICANCE OF THE STUDY
This study not completely, exclusive, will serve as an impute for these intending to carryout study on this or other related topics.
For student and those who do not know the meaning and instruments of credit guideline, this study will serve to clear the doubt. A proper understanding of the diagnosed factors inhibiting the realization of the credit guidelines will help the monetary authorities and the citizens at large gear up the economy towards the attainment of optimum rate of growth.
This material content is developed to serve as a GUIDE for students to conduct academic research
Delivery: Within 24 hours
Advertise Here
Not what you were looking for? Perform a search
What's your project topic?
Comment on Facebook:
Related Project Materials
- 1.
THE ADOPTION INFORMATION TECHNOLOGY AND THE IMPROVEMENT OF
CUSTOMER SATISFACTION OF SELECTED BANKS IN JOS PLATEAU STATE CHAPTER ONE INTRODUCTION 1.1 Background Of The Study All banks operating in Nigeria mu...More »
Item Type: Project Material | 54 pages | 2,425 engagements |
- 2.
THE IMPACT OF FEDERAL STUDENT LOAN INTEREST RATES ON BORROWER REPAYMENT BEHAVIOR IN NIGERIA
CHAPTER ONE INTRODUCTION Background of the study Student loans have become a crucial element of worldwide higher education finance. In the last ten...More »
Item Type: Project Material | 54 pages | 1,323 engagements |
- 3.
FINANCIAL TECHNOLOGY (FINTECH)AND CUSTOMER SATISFACTION IN NIGERIA. (A CASE STUDY OF OPAY)
CHAPTER ONE INTRODUCTION 1.1 Background of the study Globally, technology has permeated every facet of our lives, encompassing social interactions, ed...More »
Item Type: Project Material | 54 pages | 930 engagements |
- 4.
AN ASSESSMENT OF THE EFFECTS OF MULTIPLE BANK CHARGES ON THE CUSTOMER'S BANKING DECISION
CHAPTER ONE INTRODUCTION Background of the Study The selection of a banking institution may be impacted by various factors. Cost may or may not be the...More »
Item Type: Project Material | 54 pages | 1,272 engagements |
- 5.
MULTIPLE BANK CHARGES: ASSESSING ITS IMPLICATIONS ON THE GROWTH OF SMES IN NIGERIA
CHAPTER ONE INTRODUCTION Background of the Study The inception of the banking sector in Nigeria dates back to 1892 when the First Bank of Nigeria P...More »
Item Type: Project Material | 54 pages | 1,446 engagements |
- 6.
AN EXAMINATION OF THE INFLUENCE OF MULTIPLE BANK CHARGES ON CUSTOMER BEHAVIOR
CHAPTER ONE INTRODUCTION Background of the Study A stable banking industry is crucial for the development and stabilization of a country's economy,...More »
Item Type: Project Material | 54 pages | 5,020 engagements |