Effect of Monetary Policy in Banking Industry in Nigeria
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 AREA OF STUDY The area of study o this research work is to determine the effect of monetary policy on the performance of banks in Nigeria. This study will cover all the commercial banks that have been in existence since 1975-2004. More so, the aggregates rate is used in assessing their performance.
3.2 METHOD OF INVESTIGATION/SOURCE OF INFORMATION According to Asika (2002), research work can be defined as the restructuring of investigation aimed at identifying variables and their relationship to one another. This is used for the purpose of obtaining data to enable the researcher test hypothesis or answer research questions. This study relies principally on secondary data. The sources of these data are publications of Central Bank of Nigeria (CBN) and The Federal Office of Statistics (FOS) such as annual reports, gazette, statement of accounts, economic and financial reviews and statistical bulletin. Empirical investigation is based on annual observations of commercial banks covering the period of 1975-2004.
3.3 SAMPLING PROCEDURE Using sampling procedure will not be appropriate in carrying out this research work. In this review, the in-depth study of the operation of Central Bank of Nigeria would not require sampling procedure because it is the only body that has primary responsibility to maintain price stability and foster the implementation of monetary policy in Nigeria.
3.4 MEASUREMENT OF VARIABLES The variable research work includes the dependent and independent variables. The dependent variable of this project work is the monetary policy, which are thus: interest rate, exchange rate, banks reserve and liquidity ratio. The independent variable is the performance of banks in Nigeria, which is measured based on efficiency and asset sizes.
3.5 THE DATA COLLECTION The data sources are secondary sources of data. The sources includes Central Bank of Nigeria Briefs, statistical bulletin, Economic and Financial
RESEARCH METHODOLOGY
3.1 AREA OF STUDY The area of study o this research work is to determine the effect of monetary policy on the performance of banks in Nigeria. This study will cover all the commercial banks that have been in existence since 1975-2004. More so, the aggregates rate is used in assessing their performance.
3.2 METHOD OF INVESTIGATION/SOURCE OF INFORMATION According to Asika (2002), research work can be defined as the restructuring of investigation aimed at identifying variables and their relationship to one another. This is used for the purpose of obtaining data to enable the researcher test hypothesis or answer research questions. This study relies principally on secondary data. The sources of these data are publications of Central Bank of Nigeria (CBN) and The Federal Office of Statistics (FOS) such as annual reports, gazette, statement of accounts, economic and financial reviews and statistical bulletin. Empirical investigation is based on annual observations of commercial banks covering the period of 1975-2004.
3.3 SAMPLING PROCEDURE Using sampling procedure will not be appropriate in carrying out this research work. In this review, the in-depth study of the operation of Central Bank of Nigeria would not require sampling procedure because it is the only body that has primary responsibility to maintain price stability and foster the implementation of monetary policy in Nigeria.
3.4 MEASUREMENT OF VARIABLES The variable research work includes the dependent and independent variables. The dependent variable of this project work is the monetary policy, which are thus: interest rate, exchange rate, banks reserve and liquidity ratio. The independent variable is the performance of banks in Nigeria, which is measured based on efficiency and asset sizes.
3.5 THE DATA COLLECTION The data sources are secondary sources of data. The sources includes Central Bank of Nigeria Briefs, statistical bulletin, Economic and Financial