CBN Digital Commons (Central Bank of Nigeria)
Not a member yet
1580 research outputs found
Sort by
Analysis of Crime Data using Principal Component Analysis: A case study of Katsina State
No full textThis paper analyses Katsina State crime data which consists of the averages of eight major crimes reported to the police for the period 2006 – 2008. The crimes consist of robbery, auto theft, house and store breakings, theft/stealing, grievous hurt and wounding, murder, rape, and assault. Correlation analysis and principal component analysis (PCA) were employed to explain the correlation between the crimes and to determine the distribution of the crimes over the local government areas of the state. The result has shown a significant correlation between robbery, theft and vehicle theft. While MSW local government area has the lowest crime rate, KTN local government area has the overall crime rate in the state. Robbery is more prevalent in DMS local government area, rape in JBA local government area, and grievous hurt and wounding in DDM local government area. The PCA has suggested retaining four components that explain about 78.94 percent of the total variability of the data se
Is monetary policy responsive to external reserves?: empirical evidences from Nigeria
No full textThe global economy has witnessed extraordinary boost in the accumulation of external reserves, following the Asian financial crisis of the 1990s. External reserves increased sharply from US10.0 trillion in January 2012. Developing countries increased their share from 30.0 per cent in 1990 to 67.0 per cent in 2011. Nigeria is not left out in this trend, as external reserves grew from US34.68 billion in March 2012, representing over 530 per cent increase within the period. This placed Nigeria as the 44th largest reserves holder in the world. Reflecting on this phenomenal increase in Nigeria’s reserves, that places Nigeria in such a strategic position, there is the need to examine, if the Central Bank of Nigeria considers the changes in the level of reserves, in its monetary policy decision making. The study applied an Autoregressive Distributed Lag (ARDL) approach to an extended version of the Taylor-type rule to estimate the monetary policy reaction function for Nigeria, with emphasis on external reserves. The results show that the Central Bank of Nigeria reacts to changes in the level of external reserves and exchange rate, in addition to output gap, thereby rendering the cogent conventional Taylor rule inadequate to assess the monetary policy reaction function of the Central Bank of Nigeria. This justifies the modification of the rule to incorporate other variables in addition to inflation and output to capture the reaction of monetary policy to developments in the economy. The study also validates the interest rate smoothing behavior, showing that the Central Bank of Nigeria is concerned with costs associated with interest rate variability
Asset Prices, Credit Growth and Monetary Policy in Nigeria
No full textThis paper contributes to the debate on the monetary policy transmission mechanism in Nigeria. The paper explores the impact of monetary policy on credit growth, and whether these credit developments are capable of influencing asset prices (stock prices) in the Nigerian economy. Using the VAR model spanning annual data from 1986 to 2012, the impulse response functions revealed that the relationship between asset prices, captured by the All-Share Index, and monetary policy, is not direct, but operates mainly through the response of inflation to key monetary aggregate. A positive shock to money supply growth would raise credit and inflation which would then induce growth in asset prices growth in asset prices
How far has banks\u27 efficiency changed overtime in Nigeria? : an empirical investigation
No full textThis study investigates how banks\u27 efficiency has changed overtime in Nigeria. The study applied Data Envelopment Analysis technique to obtain efficiency estimates such as technical efficiency, pure technical efficiency and scale efficiency for the period 2007-2012. The Malmquist Productivity index, which measures technical change and efficiency change, was also obtained. The result suggests mixed developments in terms of technical, pure technical and scale efficiencies of banks during the assessment period. Average pure technical efficiency at 39.8 per cent is higher than the scale and technical efficiencies at 30.0 and 24.5 per cent, respectively, while average technical change and efficiency change index were at 1.2 and 2.3 points, respectively
Monetary policy and bank behaviour in Nigeria
No full textThis paper analyses monetary policy and bank behaviour in Nigeria. Existing evidence shows that banks alter their lending behaviour in a specific way following a change in monetary policy. This study investigates the dynamic relationship between the actions of the monetary authorities through changes in the monetary policy rate (MPR), and the behaviour of deposit money banks in Nigeria through their allocation and pricing of credit. We employed aggregates time-series data as in several studies on bank lending. Two variables, credit to the core private sector and lending rate, which measure whether banks change their behavior when CBN changes the direction of monetary policy were employed. Impulse response analysis was also employed to study the dynamic interaction of the variables. The findings of the study revealed that while other factors are considered by the banks before they change their lending behavior, variation in maximum lending rate is also associated with changes in MPR, suggesting the fact that banks in Nigeria watch closely the movement in MPR for their credit pricing
Financial System Stability Framework: The Emerging Economies Experience
No full textThe objective of this paper is to review the macro-prudential framework, its tools and its nexus with financial stability. The experience of the emerging market economies in designing macro prudential framework would be highlighted. The remaining sections of the paper are divided into six. Following this introduction, section 2 contrasts macroprudential policy issues against micro-prudential issues. Section 3 discusses macroprudential framework in different jurisdictions. particularly in the emerging market economies vis-a-vis developed economies. Section 4 discusses the experience of some emerging economies in the implementation of macro-prudential policies. While section 5 reviews major benefits of macro-prudential policy analysis. Section 6 presents the challenges and prospects of macro-prudential analysis in relation to its linkage with the traditional monetary and fiscal policies. Section 7 concludes the paper
Financial Sector Development and Economic Growth: a theoretical exposition
No full textThe various literature and studies reviewed in this exposition have underscored the positive impacts of a developed financial sector on an economy. Whilst a few studies showed that finance follows growth, the majority opinion is that finance leads growth. Unfortunately, growth has not led to economic development in many developing economies, necessitating intervention by such bodies as the United Nations, International Labour Organization and United Nations Development Programme. Economists are equally concerned about this development and have, therefore, conducted studies to show the relationship between economic growth and poverty alleviation. They generally agreed that growth is good for poverty reduction
Measuring competition in the Nigerian banking sector
No full textThis paper investigates the impact of banking sector consolidation on competition in the Nigerian banking sector. The study evaluates the degree of competition using H-statistic proposed by Panzar and Rosse (1987), and bank level data from Bankscope to measure the degree of competition before and after consolidation in the Nigerian banking sector. It was concluded that while consolidation marginally improved competition, more needs to be done to further improve competition in the sector. This finding suggests that policy makers should continue to provide level playing field for all participants while simultaneously working to promote stability concerns to support private sector activities and economic growth in the country
Social determinants and dynamics of health inequality in Nigeria
No full textThis paper sheds light on the social determinants of health inequality in Nigeria by quantifying the dynamic relationship between socioeconomic indicators and child anthropomorphic outcomes. Applying multivariate regression analysis and the Blinder- Oaxaca decompositions on recent demographic and health survey [DHS] data the study shows that bad health is disproportionately concentrated on the poor and some geopolitical zones of the country. Differences in wealth account for about 58.0 per cent and 33.0 per cent of differences in child nutritional and underweight status between the poor and nonpoor. Although improving over time, these differences suggest better targeted social policy reforms in the country