Economic and Financial Review


Central Bank of Nigeria


Monetary Policy, Commercial Banks, Nigeria


The purpose of this study is primarily to investigate the impact of monetary policy on the performance of the commercial banking industry in Nigeria. An analysis of the industry data showed a strong relationship between monetary policy instruments and commercial bank profitability measures, suggesting that appropriate monetary and banking policies are important factors to the continued stability and profitability of the commercial banking industry. More importantly, the evidence of oligopolistic competition in the commercial banking industry involving the three big commercial banks raises questions on their influence on effective transmission of monetary policy in Nigeria, role as financial intermediaries and the overall stability of the financial system in the event of a pronounced distress in any of them.

Author Bio

The author, a Principal Economist in the Policy Intelligence Unit of the Research Department, Central Bank of Nigeria.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Uchendu, Okorie A. (1995). Monetary Policy and the Performance of Commercial Banks in Nigeria. CBN Economic and Financial Review. 33(2), 156-170.



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