DEPARTMENT OF COMPUTER SCIENCE, PROJECT TOPIC: COMPUTERIZATION OF DENTAL EPIDEMIOLOGICAL RECORD







COMPUTERIZATION OF DENTAL EPIDEMIOLOGICAL RECORD
(A CASE STUDY OF UNILORIN TEACHING HOSPITAL ILORIN, KWARA STATE)
TABLE OF CONTENT
    I.        Title page
  II.        Certification
III.        Dedication
IV.        Acknowledgement
  V.        Table of contents
CHAPTER ONE
1.0      General Introduction
1.1   Statement of the problem
1.2   Significance of the study
1.3   Aims and Objectives of the study
1.4   Research questions
1.5   Limitation and scope of the study
1.6   Definition of term
CHAPTER TWO
2.0   Literature Review
2.1   Review of Nigerian monetary policy
2.2   The process of formulation of monetary policy in Nigeria
2.3   The appraisal of monetary policy
2.4   The objectives of monetary policy
2.5   The effects of monetary policy
2.6   The importance of monetary policy
CHAPTER THREE
2.0      Research Methodology, Investigation and Application
3.1   Research Instrument and Techniques
3.2   Determination of population
3.3   Data Analysis and Techniques used
3.4   Data Administration
3.5   Limitation of the Methodology
                CHAPTER FOUR
4.0   Data Analysis, Presentation and Interpretation
                CHAPTER FIVE
5.0      Summary of Finding
5.1      Conclusion
5.2      Suggestion for further study
5.3      Recommendations
PROPOSAL
The purpose of this research project is to provide, in depth, understanding into the effect of monetary policy and banking profitability,(A case study of First Bank Nigeria PLC, Lagos Branch) the effects, importance, related problems and suggested solutions to the issue on Nigerian Economy as an aid to stabilization of the economy and it’s effects on banking sectors.
This research project comprises of five chapters;
Chapter One: General introduction, statement of research problem, aim and objectives of the study and the significance of the study.
Chapter Two: Literature review, Review of Nigerian monetary policy, objective of monetary policy and the process of formulation of monetary policy.
Chapter Three: Research methodology, research instrument and techniques.
Chapter Four: Presentation of data and analysis of data.
Chapter Five: Summary of the study, conclusion, suggestion for further study and recommendations.














CHAPTER ONE
1.0      GENERAL INTRODUCTION
        One critical issue that has become worrisome in recent development in the banking sector is the factor that prevailing performance of banks, which is largely considered enviable judging solemnly by the level of profit especially if the new banks and existing older banks will hardly last the medium not to talk of the long time.
        However, with the prevailing issue which was adopted as well as the realization that no bank is immune to failure (dismal performance). It is important to conduct a research that would help identify those factors that really determines and could therefore sustain sound bank performance and increased profit ability now and in the future.
        This paper however researches into how the monetary policy guideline from 1961-2001 has affected bank performances and profitability in Nigeria. The achievements of those monetary guidelines or policies are of tremendous importance in the economic management of Nigeria especially commercial and merchant Banks.
        Since 1976-1977 Nigerian economy has witnessed a serious macro-economic problem characterized by slowdown in economic activities, low capacity utilization, growth employment, heavy debt burden, accelerated inflation, intensified exchange rate depreciation and the lots and so on, persistently high and rising government deficit financing come up increasingly is needed to finance or revitalize the economy monetary policies are involve to monitor the rate of money inflow and outflow so as to minimize Naira devaluation.
        Monetary policy in Nigeria under study was not only confirmed to consolidate the country currently but to regulating the banking system towards the promoting and developmental objectives. It also  measure directly against a rapidly deteriorating deposit inflationary and balance of payment situation.
1.1   THE STATEMENT OF THE PROBLEM
             The statement of the problem is to see how Central Bank of Nigeria’s monetary policy and guidelines  has been rescheduled from the past ten (10) years and its effectiveness over the years.
The problems also seek to address or analyze profitability of a bank as a means of stabilizing and revitalizing the economy of Nigeria. Bank profits are essential characteristics of revitalization of the economy.
        However, monetary policy remains the same throughout the years typically, monetary policy faced an increasing difficult task due to the large part of inadequacy of the finance and absence of harmonization between monetary and fiscal policies.
        The problem was also compounded by the fact that rapid rate of increase in money supply and liquid assets was by far outrunning that of total output of the economy as most investment expenditure are continued mainly to public infrastructural projects and directly non-productive industries of the sectors .
        In these circumstances, banking industries has a crucial part to play in adapting a package of objective measure that would have the effect of minimizing the conflict of objectives posed while trying to achieve the maximum result given the constraint posed. Bank also drive to mount and pursue dynamic and purposeful agriculture extension delivery services which will in essence provide a sustainable availability of food, raw material and employment opportunities essentially due to the fact that banks occupies a special place and plays significant roles in the economy.
        As such in the industry of banking and economics of many banks have been the most widely regulated of all business what has partially explained statements is the understandable commitment of regulations to the minimization of incidence of banks failure and distress.
1.2   SIGNIFICANCE OF THE STUDY                           
The significance of the study is to see how some monetary policy and prudential guidelines has effect on Nigerian economy as an aid to stabilization of the economy and its effects on the banking sectors with regard to payment coupled with the standard of living of individual citizen of Nigeria as a whole. Special references were particularly made to First Bank of Nigeria PLC, which is the case study of this research work as regards its profit over the years as a means of generating funds to the government and improvement of the economy at large.
However, some of the specific significance attached to the studies includes:
(A)        Achievement of Economic Growth
The objective believes that monetary policy can be used to influence the rate of growth of the economy through its influence aggregate demands and enhance mass increase in output.  The school of thought argues that a modest rate of growth of the monetary supply (MS) and the price level is necessary for economic growth because for economic growth, it is only in such circumstances that the rate of profit would rise and the innovation to invest would increase.
(B)        Achievement of Full Employment
The term full employment does not necessary means that everyone must have a job but unemployment level in the country should be aggregate to reduce to minimal level. By generation of full employment, majority of the citizens would have a job or the self-reliance and this lead to an increased living condition.
(C)                        To Control Inflation
An unbearable high rate of inflation is not good for an economy especially an economy like ours. This is because inflation favors some members of the economy than the other. Borrowers’ gain and lenders loss outright. Notwithstanding, monetary policy is strongly used to control and regulate the level of inflation for improved economic welfare.
(D)       Achievement of a High Standard of Living
The overall effort of monetary policy is the achievement of a healthy standard of living.
The above mentioned objective leads to the achievement of a high standard of living. If economic growth is achieved, it leads to fall in employment, improved balance of payment position, and consequently, inflation is reduced or controlled which gives rise to the high living standard.
1.3   AIMS AND OBJECTIVES OF THE STUDY
The aim and objectives of this research work are:
(A)        Highlighting the effectiveness of the monetary policy in the economic development of Nigeria to see its influence on the banks performance and the rates of profits.
(B)        Highlight on the problems or limitations of the monetary policy on bank profitability.
(C)         Proffer possible solutions or recommendations to the problems.
1.4   RESEARCH QUESTIONS
        The following research questions would be addressed in order to find solution to the problems;
                    I.        How has monetary policy been effective since its inception in 1959 till especially its effectiveness in the last two years?
                  II.        How these monetary policies (moral suasion, open market operation, discount rate, sectoral allocation, interest rate, etc.) and prudential guidelines affected some bank performances at all.
                III.        How has bank performance and profitability helps in the stabilization of the Nigeria macro-economic problem.
                IV.        What has been done to improve upon the policy for better performance of these banks?
                  V.        Of what importance of the policy and bank profitability to the Nigerian economy.
                VI.        What are the effects of policy in the bank?
              VII.        What can be done to stimulate bank profitability to Nigerian economy?
1.5   LIMITATION AND SCOPE OF THE STUDY
        Not many text books have been written on the monetary policy, also only a few textbooks treated bank profitability. These text books are not easily and really available and there are not easily enough adequate and reliable information for the purpose of the study.
        Non-financial institution visited was not ready to give adequate information and realize documents as regards the institution. This then limits the scope to concentrating is restricted to first bank plc, Lagos branch. However, the very few financial institution that were visited includes first bank which realize a financial statement of it’s profit and loss and balance sheet between 1990 to 2002 fiscal year.
1.6   DEFINITION OF TERMS
        Here we will give some definition of terms that would likely be of importance to this research work.  Some of these definitions include:
(A)        Monetary Policy
                                    I.        It is defined by Central Bank of Nigeria (CBN) (1992) as the combination of measures design to regulate the value, supply and cost of money in an economy in consonance with the level of economic activities.
                                  II.        Thighadi (1980) defined monetary policies as governmental policies or measures directives which seek to control monetary gromoteps a virile finance system with a view to training monetary stability in the economic growth which deals with the discretionary control of supply by the monetary authorities in order to achieve the desired economic growth.
                                III.        Uzoga (1981) defined monetary policy as the management of the extension and contraction of the value of monetary circulation for the specific purpose of achieving certain defined natural objectives.
(B)        Profit
The gains of financial towards accrued to owners of business after a cost and other expenses involved in the production of goods and services produced by the business concerned have been dedicated from the total revenue.
                                      I.      Profitability Index: This is another time adjusted method of evaluating investment proposal. It is the ratio of the present value of future cash benefits the required rate of returns to the initiated cash outflow of investment.
                                    II.        Profitability: It is the process or net of making some activities viable and profitable.
(C)        Money Supply
This is defined  as stocks made available in so much billions of Naira at a particular point in time in economy.
        (D)    Economic Growth
This means an increase in the real level of net national product through measures will then be sensitive to the way in which national is measured. The economy with large containing barkers goods or unrecorded consumption of its own product may raise its actual level of national product without the record level showing any increase.
(D)       Policy
These are guiding principles or facts continuing decision established by the organization of the governing actions. Usually under receptive conditions.
        It is also described as guides who chart the course of an organization and govern towards the achievement of the purpose of which it was set.
        It defines how the company will deal with shareholders, employees, customers, suppliers, distributors and other important groups.
 


CHAPTER TWO
2.0   LITERATURE REVIEW
2.1   REVIEW OF NIGERIAN MONETARY POLICY
        Monetary policy consist of actions by government which are aimed at the achievement of a certain set of economic objectives. More especially monetary policy is the deliberate action on the part of the monetary authorities, The CBN and The Ministry of Financing to control the money supply and general credit availability air well as the level of cost. That is the rate of interest. The aim of the monetary authorities is to exercise this control in certain ways dictated by government economic objectives, because they constitute an important source of money supply and because they play quite a significant role in making credit available. Commercial Banks are usually the main vehicle of monetary policy.
 In developing countries the economic objective which have pursued very vigorously by the use of monetary policy since world war two includes full employment, price stability, economic growth and balance of payment equilibrium in the less developed countries, the greatest emphasis has understandably been placed on rapid economic development as the paramount objectives with price stability, employment, the foreign exchange position and an equitable distribution of income and additional goals.
        In this circumstances, an appraisal of monetary as instrument for achieving set economic goals can be meaningful in the context of Nigeria only if analysis is limited to the events of a little over decade ago. Moreover, since the appropriate institutional frame works for operating monetary policy did not exist until the establishment of a Central Bank in 1959.
        The objectives of monetary policy consisted of the use of selective credit central prescription of an aggregate credit the imposition of some research requirement and the maintenance of a lid on interest rate as a means of income including an increase in production capacity. However, as it was in the 70’s it became increasingly difficult to link the outcome  of monetary policy directly with overall economic performance inflationary pressure worsened and objectives of maintaining an external equilibrium were far cry. The major problems of the monetary policy up to the middle of the 1980’s was that of inadequacy of monetary control framework, the monetary authorities lost control over the growth of monetary aggregates. The government declared of 15months starting from that date CBN 1985.
        A decree empowered the president to issue orders and make regulations among other things for the operation of the reactive, improve or generally assist in production that might assist in the conservation of foreign and those that might reduce inflation and unemployment.
        Monetary policy was also aimed at including the emergency of a market oriented financial system for effective mobilization. Basically, the monetary policy measures adopted under the programme were designed to damage inflationary pressure and restrict the demand for available foreign exchange resources. Some returns have been introduced since 1986, for example Commercial Bank and Merchant Banks have been subject to equal treatment since the operation have been found to produce similar effects on monetary policy.
        In 1998, the reserve requirement was prefined such  that it base was expounded into include all deposits. The monetary authorities sought to strengthen the banking system for the effective monetary management by increasing in February 1997, the minimum paid up capital of Commercial Banks from N20 million to N40 million in the same year, the CBN introduced the risk weighed measure of capital adequately recommended by the best committee of the best of the bank for international settlement. Late in 1992, the CBN introduced as set of prudential guidelines for licensed banks, which were complementary to both the capital adequate requirements and statement  accounting standards.
        This brisk reviewing of the Nigerian monetary policies were seeing constantly directly required to restrain their activities in one way or the other. To what extent does the CBN intervention impact on their operational efficiency can the net earnings of banks after deduction for operational expenses and depreciation be explained by some of the policy variables.
        These questions will be addressed in chapter four of this write up.   
2.2   THE PROCESS OF FORMULATION OF MONETARY POLICY IN NIGERIA
        In the process of promoting monetary policy stability in Nigeria, the CBN at the beginning of every fiscal year issue credit guideline popularly known as monetary circular to all commercial and merchant banks operating in the country. Before this circular eventually comes out, lots of works would have been done. The details are usually outlined in the central bank memorandum to be examined by the Board of Governors of the government for the approval. The decision of the government is embodied in the monetary policy circular issued by the CBN.
        Although, this were implicit in the British Colonial economic policy after world war two, following the Nigerian political independence in October 1960. In particularly, it did not become assimilated until the lunching of the First National Development SPlan, 1962-1968. This formation and objectives was calmly stated for the first time in the Second National Development Plan,1970-1974.

2.3   APPRAISAL OF MONETARY POLICY
This project deals with how the monetary policy instruments can be used to effect the economic activities. Monetary policy, the primary function of all Central Bank is extended through many techniques and they have now become widely known. These are needed however to let us know that the achievement of these policies have a resultant effect on the macro objectives and consequently the overall economy.
These  monetary policies are monetary and credit development, contraction and expansion  any policy, and Development, Liquidity management , Discount Rate policy, stabilization securities, External resources management and many more which could not be mentioned. Some of these monetary policies are reviewed from Central Bank of Nigeria Annual Report journal 2007.
The achievement of the major activities of macro-economic stability and the resumption of sustainable growth calls for reaching the following method below:
1.  MONETARY AND CREDIT DEVELOPMENT
According to the Central Bank of Nigeria (CBN)(2007). This development arose from the monetization of excess crude receipt and distribution of enhanced statutory allocations to the three tiers of government, huge autonomous inflow and pre-election spending as well as supplementing budgeting.
        Consequently, the Bank intensified its monetary operations to secure that the targets under the policy support instrument (PSI) were met at the exit period in June 2007 and the rest of the year.
2.  RETURN OF FIXED INCOME SECURITIES – THE YIELD CURVE
The CBN (2007) Annual Report: This is the need to develop a yield curve that would serve as a bench for the risk-free and the pricing of the securities, investor’s reference point, forecasting interest rate as well as a possible lending indicator for economic activities. The average yield curve in April 2007 was typically upward sloping however beyond the five year maturity, the curve showed a sleeper slope, reflecting investor’s expectation of higher returns and the impact of risk premium on longer term bounds.
3.  CONTRACTIONARY POLICY
Thighadi (2005) : This is a plan of action to reduce the amount of money in circulation. It is employed when the Central Bank of Nigeria is interested in mopping up excess liquidity from the economy which is a situation of too much money purchasing few goods the Central Bank of Nigeria (CBN) will then visit this approach, hence the monetary balance will be reduced to the minimal and inflation will be consequently be checked.
4.  EXPANSIONARY POLICY
Thighadi (2005) : As against the contractionary policy, the later occurs when there is an increase in government expenditures and one of ways of adjusting this is through deficit financing. Under this arrangement, the Central Bank of Nigeria (CBN) is interesting in pumping more money into circulation to increase the liquidity balance. Some of the monetary policy tools that can be designed for this situation is the reduction of the ruling Bank rate, purchasing of financial instrument.
5.  LIQUIDITY MANAGEMENT
The CBN (2007) : This measure was aimed at deeping inter-bank trading and encouraging bank to increased resources in the credit market as well as mitigating the impact of fiscal liquidity injections. Excess liquidity persisted in the money market in 2007, arising mainly from the improved statutory allocations to the three tiers of government pre-election spending and additional fiscal injections from the supplementary budgets of the Federal and State government.
6.  MONEY MARKET RATE
The CBN Annual Report (2007): The Bank’s interest rate policy as well as monetary conditions engendered a regime of relatively stable money market rates in 2007. On a monthly basis, the weighed average inter-bank call, tenured and open buy –back rates average 7.84, 11.62 and 7.91 percent respectively compared with 7.38, 11.9 and 9.0 percent in 2006. The inflow of funds from the Federation Account, Joint Venture, Cash Call Payment, disbursement of the new monetary policy implementation frame work contributed to  moderate the level of interest rates in all segments of the market.
7.  STABILIZATION SECURITIES
A.Y Sanusi (Project)(2005): In Nigeria, the Central Bank of Nigeria (CBN) is empowered to issue  stabilization security in order to maintain stability in the level of economic activities. The CBN has used this measure from time to time to punish banks that violates the monetary policy guideline it issues annually.
 8.    INTEREST RATE AND DEVELOPMENT
The CBN (2007): The bank’s policy of a market base interest rate regime was maintained in 2007. Interest rate remained fairly stable since mid-December 2006 when the MPR replaced the Minimum Re-discount Rate (MRR) under the new monetary policy implementation frame work. Those remained the anchor interest rate used to moderate volatility in the inter-bank rates, encouraging inter-bank trading and engender transactions rate that could improve the transmission of monetary policy actions.

2.4   THE OBJECTIVES OF MONETARY POLICY SINCE 1959
The following are the objectives of monetary policy:
a)   The maintenance of relative stability of domestic price i.e keeping and checking.
b)  The maintenance of healthy balance of payment.
c)   The mobilization of increase domestic sourcing to facilitates domestic capital formation.
d)  To facilitate equitable distribution of income as additional goods.
e)   The acceleration of the pace of economic development and the stimulation of employment opportunities.
f)    To promote and develop the structure of facilities by granting assistance for the government in the fulfillment of its goals of economic development.
g)   Increasing the flow of credit to the priority of the economy, particularly the agriculture and manufacturing to reduce the rate of domestic price inflation.
h)  Making credit available for the financing of the government programme and making more financial resources available for economic growth.
2.5   THE EFFECTS OF MONETARY POLICY
Nigeria economic is forecast to grow in a rate that would be the envy of money western Nations, if monetary policies are well controlled. However, their growth would be primarily driven by some sectors banking energy and 0.1 which affected the performance of the Nigerian economy on the positive side was the stimulate effects of monetary policies especially given the severance of the Federal Government agreement with the IMF.
Since 1967 monetary policy during this study was greatly affected by the outbreak of the civil war, which lasted 1970, monetary policies of these periods were geared essentially to needs of a war economy. The articulated inflation any consequence of this policy made to the amend to equipped the control banks with additional weapons of monetary control backed up with CBN Act amendment No 3 Decree No 50 of 18th September 1958. The decree contain a prevocational which relate to an array of monetary policy instruments representing additional for the Central Bank existing adversary go weapons. These include the following:
                        I.        Setting of the level of minimum nation of total loans advances and discount which commercial banks must make to indigenous.
                      II.        Calling for special deposits from the commercial banks.
                    III.        The prescription of the structure of the specify liquid asset to help in the stimulated ration to deposit liabilities.
                    IV.        The imposition of ceilings.
                      V.          The prescription of time to time of cash reserve which the commercial banks should lodge within the control banks.
                    VI.        The issued allocation and purchased from the financed institution of stabilization securities.
                  VII.        The approval of commercial banks lead to certain sizes. During this period inflationary experience  a series of steps was taken to the description of bank credit between the private and public sector as features to the inflation field.
consequently, the direction of CBN monetary policy during this period was dedicated by effort to certain pressure on price and exchange rate. But a more important factor in a continuation of deficit financing for the expenditures. This development cause a substantial increase in money supply and hence correspond rise in price level in the absent of any appreciable increase in the output of domestic goods and services.
Government heavily borrowing from banking system to finance its huge budgets deficit created string inflammatory pressure which excerpted major disturbing influenced on monetary policy and limited source of monetary policy in fulfillment of those objectives. All this produced an indirect impact through difficult in banking sector.
2.6   THE IMPORTANCE OF MONETARY POLICY
        Monetary policy consist of actions by the government which aimed at the achievement of certain set of economic objectives it deliberate action on part of the monetary authority control, the monetary supply and general credit availability as well as level of its cost, that is the rate of an interest.
        These authority exercised controls in the certain ways dictated by the government economic objectives because they constitute important sources of money supply and because they quit a significant role in marketing credit availability.
        However, Commercial Banks are the major vehicles of monetary policy and the engine room of monetary policy is the stock of money as it relates to the quantity theory of money.
        Since the entire concept revolve of the level of monetary base, it is important to have the economic interpretation.
CHAPTER THREE
3.0   RESEARCH METHODOLOGY INVESTIGATION AND APPLICATION
        INTRODUCTION
This chapter deals mostly with the process of data collection, presentation and interpretation of the data in order to arriving at a collection in the research work. The methodology will provide me with the instrument used for the research works the validity and reliability of the research.
3.1   RESEARSCH INSTRUMENT AND TECHNIQUES
Apart from the use of communication and observation method of data collection that is the use of primary data and secondary source of data used on this study. The primary source of data as indicated above is from the questionnaire which provides me with the kind of techniques used for the research work.
        The secondary data are obtained from observation of the company’s monthly and annual reports, various First Bank of Nigeria PLC, Lagos journals and publication for the period under study.
A.                      PRIMARY DATA
Primary data is one of instrument used for collection of data normally the collection of primary data is usually done by either personal interview or questionnaire. But for the purpose of this research work, I intend to use questionnaire which will be in a better position to provide useful information for this research work. The questionnaire forms were distributed to some staff of First Bank of Nigeria PLC, Lagos and responses were received which served as data for this report writing.
B.                      SECONDARY DATA
The use of the case study’s journal and publication of the monthly business and economic report observed provide information about the bank performance and its profit as been affected by the Central Bank of Nigeria’s monetary and prudential guidelines for the time under study.
3.2   DETERMINATION OFPOPULATION
        Population is the collection of individual items, whether of people or object that has to observe in a given problem or a situation. It is not easy to cover the whole population of banking industries in the country or nation at large, a case study is selected and used.
        A case study is the selection of a situation or event and studying it in debt, and analyzing everything for the purpose of understanding the particular event or situation, as such, the case study used for this research projects, First Bank of Nigeria PLC, Lagos Branch, twenty (20) staff were selected as sampling method used for this research work.

3.3   DATA ANALYSIS AND TECHNIQUES USED
        The method used in the analysis of data collected with reference to the hypothesis were based  on either of the following responses to the questions set in the questionnaire:
                      I.        Strongly agree.
                    II.        Agree
                  III.        Strongly disagree
                  IV.        Disagree
3.4   DATA ADMINISTRATION
        The following contains questions based on the nature and effect of monetary policy in economic activities of Nigeria.
        In order to test the hypothesis postulated by the researcher, ten (10) questions were designed in the questionnaire forms to be complete with options like strongly agree, agree, strongly disagree or disagree.
        Twenty (20) of questionnaire forms distributed to the staffs in First Bank of Nigeria PLC, Lagos Branch were adequately answered at spot and additional information relating to the topic of this research work were also provided.
        All the facts collected as data served as the basis for the outcome of this study.
3.5   LIMITATION OF THE METHODOLOGY
        A thorough search was conducted on various macro-economic and monetary text books, Heavy reliance was placed on various publications by the research and the development of the Central Bank of Nigeria and publication from research department of First Bank of Nigeria, Lagos Branch. Prominent among the publication  are a view of the Central Bank of Nigeria monetary credit, foreign trade exchange policy guideline for 1996 to2001 Annual Report and Account. A descriptive method of analysis was employed through which references were drawn from data collected primary and secondary method of data collection was employed.
        The primary using the personal interview method as an instrument and secondary by observation and scrutinizing of journals and magazines.
CHAPTER FOUR
4.0   DATA ANALYSIS, PRESENTATION AND INTERPRETATION
        This chapter contains the analysis of data collected from respondents through questionnaire administered for the study. On the whole, total number of twenty (20) questionnaire were distributed to various staffs as stated in chapter three.
        All questionnaire were duly filled and returned.
        Analysis of the data collected through questionnaire are shown in the table below;
TABLE 4.1: SEX DISTRIBUTION
SEX
NUMBER OF RESPONDENT
PERCENTAGE OF RESPONDENT
Male
Female
14
6
70%
30%
Total
20
100%
SOURCE: Research Survey 2011
From the table above, it was observed that 14 respondents (70%) were male while 6 respondents (30%) were female. This response shows that male workers are more than female in this institution.
TABLE 2: AGE DISTRIBUTION.
SEX
NUMBER OF RESPONDENT
PERCENTAGE OF RESPONDENT
Less than 25 years
25years-35years
35years-45years
46years and above
2
6
10
2
10%
30%
50%
10%
Total
20
100%
SOURCE; Research Survey 2011
In the table above, 10 respondents (50%) fall between 35 to 45years of age, 6 of them which made up 30% were between 25 to 35years, 2 (10%) were falling under 25years and 2 respondents (10%) were above 46years. The research revealed that most of the workers fall between 35 to 45years.
TABLE 3: MARITAL STATUS
MARITEL STATUS
NUMBER OF RESPONDENT
PERCENTAGE OF RESPONDENT
Married
Single
Divorce
16
4
--
80%
20%
--
Total
20
100%
 SOURCE: Research survey 2011
Table 3 revealed that 16 respondents are married workers and percentage here is 80%. Also, only 4 (20%) respondents were not married. Base on the response, most of the workers are married and none of them divorced.
TABLE 4: EDUCATIONAL QUALIFICATION
QUALIFICATION
NUMBER OF RESPONSE
PERCENTAGE OF RESPONSE
WASCE/GCE/NECO
OND/NCE/PART PROF.
HND/BSc/FULL PROF.
MSc/PHD
--
4
10
6
--
20%
50%
30%
Total
20
100%

SOURCE: Research Survey 2011
From table 4, 10 respondents (50%) were HND, BSc OR FULL PROF. holders, 6 of the respondents are having MSc or PHD and the percentage here is 30% while only 4 respondents (20%) were OND, NCE, or PART PROF. holders.
        Therefore, majority of workers in this institution are HND, BSc or FULL PROF. holders.
TABLE 5: WORKING EXPERIENCE
EXPERIENCE
NUMBER OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
2years-5years
6years-10years
11years-15years
16years and above
1
3
11
5
5%
15%
55%
25%
Total
20
100%
SOURCE: Research Survey 2011
The table above shows that 11 respondents (55%) have working experience of 11years to 15years. 5 of the respondents have been spending 16 and above years. Also, 3 respondents have working experience of 6 to 10years while only 1 fall under or within 5years. Therefore, based on the data collected, majority of the workers are experiencing 11 to 15years in this institution.
TABLE 6: THE ANNUAL INCOME OR INCOME DISTRIBUTION
ANNUAL INCOME
NUMER OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
Less than N150,000
N150,000-N200,000
N200,000-N250,000
N250,000 and above
--
2
6
12
--
10%
30%
60%
Total
20
100%
SOURCE: Research Survey 2011
From the table 6, it can be analyzed  that 12 respondents (60%) were earning N250,ooo and above per annum, 6 respondents (30%) are N200,000 to N250,000 earner per annum and only 2 respondents were earning N150,000 to N200,000 annually. Therefore, majority of the workers are earning N250,000nand above annually in this institution.
SECTION B
TABLE 7: THE MONETARY POLICY HAS INCREASED CONTROL OF INFLATION
SUGGESTED ANSWER
NUMBER OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
Strongly Agreed
Agreed
Strongly Disagreed
Disagreed
17
--
--
3
85%
--
--
15%
Total
20
100%
SOURCE: Research  Survey 2011
The table 7 show that 17 respondents strongly agreed that monetary policy has increased control of inflation and the percentage of respondents here is 85% of total respondents. Also, 3 respondents disagreed with the opinion and the percentage here  is 15% which shows that the respondent support the opinion.
TABLE 8: MONETARY POLICY AND CREDIT CONTROL
SUGGESTED ANSWER
NUMBER OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
Strongly Agreed
Agreed
Strongly Disagreed
Disagreed
--
15
2
3
--
75%
10%
15%
Total
20
100%
SOURCE: Research Survey 2011
From table 8, only 5 respondents (25%) were the assumption negative while 15 respondents (75%) agreed with the opinion. It can be observed that 75% favor the assumption over the 25%.
TABLE 9: MONETARY POLICY IMPROVES STABILITY IN EXCHANGE RATE
SUGGESTED ANSWER
NUMBER OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
Strongly Agreed
Agreed
Strongly Disagreed
Disagreed
--
18
2
--
--
90%
10%
--
Total
20
100%
SOURCE: Research  Survey 2011
In the table 9, it was observed that a total of 18 respondents (90%) support the assumption while the 2 respondents (10%) against the assumption. Hence, monetary policy improves stability in exchange rate.
TABLE 10: MONETARY POLICY, THE RISE IN THE VALUE OF NAIRA
SUGGESTED ANSWER
NUMBER OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
Strongly Agreed
Agreed
Strongly Disagreed
Disagreed
18
--
--
2
90%
--
--
10%
Total
20
100%
SOURCE: Research  Survey 2011
From the table 10, 18 respondents (90%) strongly agreed with the assumption while 2 respondents (10%) disagreed with the assumption. Therefore, monetary policy make the rise in the value of Naira.
TABLE 11: MONETARY POLICY INSTRUMENT, ONLY TOOL FOR CENTRAL BANK EFFECTIVE OPERATION
SUGGESTED ANSWER
NUMBER OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
Strongly Agreed
Agreed
Strongly Disagreed
Disagreed
2
5
1
12
10%
25%
5%
60%
Total
20
100%
SOURCE: Research  Survey 2011
It can be observed that 13 respondents (65%) disagreed with the assumption while 7 respondent (35%) agreed with the assumption. Therefore, the response here renders the assumption invalid to the study.
TABLE 12: CENTRAL BANK CONTROL THE ACTIVITIES OF OTHER BANKS THROUGH THE MONETARY   POLICY
SUGGESTED ANSWER
NUMBER OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
Strongly Agreed
Agreed
Strongly Disagreed
Disagreed
18
--
1
1
90%
--
5%
5%
Total
20
100%
SOURCE: Research  Survey 2011
From the above table, 18 respondents of 90% strongly supported the view as against 2 respondents (10%) of other alternatives. The assumption is valid and valuable for the study.
TABLE 13: THE MONETARY POLICY CORRECTS THE BALANCE OF TRADE
SUGGESTED ANSWER
NUMBER OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
Strongly Agreed
Agreed
Strongly Disagreed
Disagreed
13
5
--
2
65%
25%
--
10%
Total
20
100%
SOURCE: Research  Survey 2011
The table 13 revealed that 18 respondents (90%) agreed with the assumption while 2 respondents (10%) disagreed with the assumption. Therefore, the monetary policy corrects the balance of trade.
TABLE 14: MONETARY POLICY AND CONTROL OF MONEY IN CIRCULAR
SUGGESTED ANSWER
NUMBER OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
Strongly Agreed
Agreed
Strongly Disagreed
Disagreed
16
4
--
--
80%
20%
--
--
Total
20
100%
SOURCE: Research  Survey 2011
From the above table, it was observed that 16 respondents (80%) strongly agreed with the assumption and 4 respondents (20%) agreed with the assumption. Therefore, we can deduce that, the assumption was valid and accurate for this research work.
TABLE 15: MONETARY POLICY AS ATOOL FOR ECONOMIC DEVELOPMENT
SUGGESTED ANSWER
NUMBER OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
Strongly Agreed
Agreed
Strongly Disagreed
Disagreed
12
1
7
--
60%
5%
35%
--
Total
20
100%
SOURCE: Research  Survey 2011
The table above shows that 13 respondents (65%) strongly agreed with the assumption as against 7 respondents (35%) who totally disagreed with the assumption. Therefore, 65% were positive toward the assumption while 35% were negative view.
TABLE 16: MONETARY POLICY AND BANKS PERFORMANCE.
SUGGESTED ANSWER
NUMBER OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
Strongly Agreed
Agreed
Strongly Disagreed
Disagreed
3
5
4
8
15%
25%
20%
40%
Total
20
100%
SOURCE: Research  Survey 2011
It was observed from the table above that 8 respondents (40%) with 4 (20%) respondents against the assumption while 8 respondents (40%) agreed with the assumption. Basically, monetary policy affects bank performances (negatively).
1.0.1               SECONDARY SOURCE OF DATA
This is the observation of Central Bank of Nigeria’s (1996-2001) monetary and exchange policies and guidelines. Also, First Bank of Nigeria PLC, Lagos (1996-2001) six years Statement of Account and Report 2001/2002. There were gathered to determine the effect of monetary policies on bank profitability.
TABLE 1: MONETARY INSTRUMENT IN PERCENTAGE

1996
1997
1998
1999
2000
2001

%
%
%
%
%
%
Cash reserved requirement
5.5
5.0
6.0
6.0
6.0
6.0
Liquidity ratio
25.0
25.0
28.0
30.0
30.0
30.0
Banks investment in treasury and
Treasury certified

10.0

10.0


10.0

10.0

10.0

10.0
Interest Rate Ratio for saving deposit
35.5
38.0
42.0
42.5
44.0
44.0
Maximum prime lending rates
--
--
--
--
--
--
Commercial Banks
10.0
9.0
5.0
6.5
3.0
3.5
Merchant Banks
14.0
13.0
9.0
6.0
7.0
6.5
Total
100
100
100
100
100
100
SOURCE: Research Survey 2011




TABLE 2: PROFIT MARGIN (First Bank of Nigeria PLC) 1996-2001

1996
1997
1998
1999
2000
2001

N.M
N.M
N.M
N.M
N.M
N.M
Profit (Before Tax)
(1m) loss
(1,360)loss
2,835
4,288
5,767
6,715
Profit (After Tax )
--
--
2,027
3,360
4,739
5,066
Percentage
87%
61%
62%
75%
69%
84%
SOURCE: Research Survey 2011
Following the table drawn above, it can be observed that, for 1996 and 1997 the cash reserved requirement was at five percent (5%) and later increased to 6% in 1998 and 1999, this constitutes the percentage of funds that would be kept with the Central Bank of Nigeria (CBN).
        Also, Liquidity ratio was at twenty five percent (25%) and raised twenty eight percent (28%) in 1998 and to thirty percent (30%) from 1996-2001. Bank invested in treasury certificate was at ten percent (10%) for the period under study.
        The above instruments reduced the foundation to bank as such had little capital give out as loan and advance, reducing the money in circulation which affected the bank profit for the four years and the bank recorded a huge loss.
        The profit of the bank for 1998 to 2001 were as follows:
N2,835 million before tax and N2,007million after tax and totaling 62% for 1998, in 1999, it was N4,228 before tax and N3,360million after tax totaling 75% on total profit for the tears. In 000, due to little change in interest rate the profit before tax was N5,767million and N4,739million after tax representing 69% tax percentage on total profit and finally in 2001 the bank has adjusted to the level of interest rate and recorded N62.95million before tax and N5,066million after tax representing 84.2% rise in profit.
        We can conclude that a reduction in the reserved requirement and liquidity ratio will increase the amount that commercial and merchant banks hold for business transaction, investment on finance project, etc, which thereby increase their profit levels.
4.1   INTERPRETATION OF DATA/RESULT OF FINDING
        Following the tables draw since the beginning of chapter four of this project, it can be observed that monetary policy has proved useful to all sphere of the economic development of the country but the influence of it on the banking profitability has greater percentage disadvantage.
        Therefore, monetary policy has effect on banking profitability.

CHAPTER FIVE
5.0   SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
        In summary, monetary policy has been defined as a deliberate action taken by monetary authorities to change the domestic stock of money supply.
        Monetary policy is an instrument used to control any economic and instrument for National Development. The Central Bank of Nigeria used the following measures as instrument on Nigerian economy and development. Open market operation, exchange rate , interest rate, credit control etc.
        Monetary policy facilitated the achievement of some important objectives set by the government. These are objectives of rapid economic development, optment price stability in the healthy balance of payment aimed of ensuring an adequate level of foreign exchange reserve.
        The task of monetary in respect of the above two objectives was particularly made difficult despite the wide power of monetary control made available. The reason for this was that monetary policy had to operate in the context of what appears to be destabilized fiscal policy such as the government pursued during the period.
        Monetary policy was also seared towards meeting the financial needs of the government particularly during the last two years when the civil war greatly increased these financial needs. Government heavily borrowing from the banking system to finance its huge budget deficit created strong inflationary pressure which expects a major disturbing influence of monetary policy hence, this limited success of monetary policy in period.
        In chapter 1, the write up introduced separately the topic, the aims and significance to the write up, the need objective of study and constraint to the study.
        In chapter 2, the write up make up the literature review which is from the First Bank of Nigeria PLC, Lagos Branch Bi-annual, the objective of monetary policy were highlighted, mode of formation and the appraisal of monetary policy were highlighted.
        In chapter 3, the write up constitutes basically, the mode of data collection used for this research work is both primary and secondary data. For primary data, questionnaire method was used. The secondary data, the interview is used which constitutes finding out from the officer in charge of the research development of the case study First Bank of Nigeria PLC, Lagos Branch.
        In chapter 4, the write up represent in tabular form some monetary and credit measures for the table in percentage ratio.
        In chapter 5, this constitutes the summary, conclusion and recommendation of the five chapters.
5.1   CONCLUSION
        This write up of the five chapters and presentation of data shows that though has the ratio percentage or decrease accordingly if affect banks profit and performance are couple with different identification tags such as poor managements, sharp practices and perhaps fraudulent maneuver yet of all cooperate enterprise that that rate are established to achieve profit irrespective of the commercial bank stands unique, because the activities of commercial banks constitute the market for money, the demand and supply condition of which are tremendous important in the economic stabilization of the constant watchful eyes of the government bring subject regulation in section by the monetary authority.
        From an overall view, the monetary policy from 1996 was kind of strict and respective so this has a vast impact on bank performance. Some banks according to journals are so much affected that they lose because the policy forced the commercial banks and the merchant banks to show the true phase of their statement of accounts.
        Gradually for sub-segment years the banks was able to adjust to the inventory policies and authorities and were able to make a rise and profit.
5.2   SUGGESTION FOR FUTURE STUDIES
        The researcher having gone so far and arrived at therefore, made recommendation on the basis of his findings now wishes to make these suggestions for anybody who might wish to carry out similar studies on a related topic to adhere to that, such researcher should make the study more elaborated and embracive by a way of involving more Central Bank branches in Nigeria and some financial institution to form what they respond rate has supported in the questionnaire
5.3          RECOMMENDATIONS
From the background of this study, it is observed that since a high interest rate policy affects the banking sectors adversely in such a way that it reduce the lending rate and saving rate in which individual customers and public borrow or lend money from the banks which eventually make due to high interest rate on savings and other forms of deposit.
It is recommended that monetary authority reduce the interest rate to make private individuals to save with the banks which will lead to a inordinate profit rather than loss for the banks.
Also, monetary policy should then beneficent to help in achieving government set of objectives such as control of inflation, moderating cash flow, exchange rate and international trade.
Furthermore, the growth in aggregate banks credit should be increased by the inventory authority since the banks makes part of the money market which uses capital as the instrument of searing up business activities e.g. loan to the public and private enterprises and financing other small scale enterprise which in turn improving the standard of living and economic development.
Lastly, the cash reserve ratio of both commercial and merchant banks kept with the Central Bank of Nigeria (CBN) as liquids should be reduced to provide for more cyntal adequately for leading by the public and other forms of financing embarked banks which can also lead to an increase in profit to both banks.
However, monetary policy instrument in Nigeria from this research received 80% acceptable and 20% un acceptable        
         
REFERENCES
1.                                          ASIKAN (1991) research Methodology in Behavioral Science,  Lagos Longman
2.                                  Barthinal RR Individual Economic An Introductory Textbook.
3.                                  Ekuniran A.E The Administration of Nigerian Monetary Policy OP, Lit P.217
4.                                  Green Baun Stuart Monetary Policy and Banking Journal   
Ali Mukhtar M of Finance vol. No 1
 Merris, Randall (1976)
5.                                  Odoziv A. (1992) Current Monetary and Banking Policies in Nigeria and prosopect in the third Republic CBN Economic volume 30, No 3, 19
6.                                  Olalokun F.A structure of the Nigerian Economy Journals
7.     Central Bank of Nigeria (1991) Statistical Bulletin Vol. 2 No. 2
8.     First Bank of Nigeria PLC, Lagos Branch Bi-Annual Review Vol. 2, December 1994 No. 6
9.     First Bank of Nigeria PLC, Lagos Statement of Account and                       Annual Report for the Ended 1996-2001
10.   Central Bank of Nigeria (2007) Annual Report Journal
11.   Sanusi A.Y Project (2005) Instrument of monetary policy, their Effective in Nigeria Economy
12.   Economic And Financial Review March (1992), Volume 30 No.
13.   Monetary Policy Circular, January (1992). Central Bank of     Nigeria Circular No. 30
APPENDIX  1
Appendix.







Department of Business Administration,
Kwara state polytechnic
P.M.B 1375,
Ilorin,
Kwara state.

Dear Respondent,
I am a student of the above named institution, currently undergoing a project research on the Effect of Monetary Policy and Banking Profitability.
        I will therefore appreciate, if you will complete the attached questionnaire. It shall be treated with strict confidence and use for this research study only.
        Your cooperation will be highly appreciated.
Yours faithfully
Ogunjamu Kehinde O.
APPENDIX 11
Please indicate your answer to the following question by placing a check mark in the box beside the appreciated answer or by writing your answer in the space provided.
QUESTIONNAIRE
SECTION A
1.  SEX
                    I.        MALE (     )
                  II.        FEMALE (        )
2.  AGE
                    I.        Less than 25 years ( )
                  II.        25 years-35 years (  )
                III.        35 years-45 years (  )
                IV.        46 years and above (                )
3.  MARITAL STATUS
                    I.        Married (  )
                  II.        Single (    )
                III.        Divorce ()
4.  EDUCATIONAL QUALIFICATION
                    I.        WASCE/GCE/NECO (      )
                  II.        OND/NCE/PART PROF. (         )
                III.        HND/BSc/FULL PROF. (          )
                IV.        MSc/PHD (      )
5.  WORKING EXPERIENCE
                    I.        2years-5years (        )
                  II.        6years-10years (      )
                III.        11years-15years (    )
                IV.        16years and above (         )
6.  ANNUAL INCOME
                    I.        Less than n150,000 (       )
                  II.        N150,000-N200,000 (      )
                III.        N200,000-N250,000 (      )
                IV.        N250,000 and above (      )
SE CTION B
7.          The monetary policy has increased control of inflation
                    I.        Strongly Agreed (      )
                  II.        Agreed (    )
                III.        Strongly Disagreed (         )
                IV.        Disagreed (       )
8.  Monetary policy has effect on credit control
                    I.        Strongly Agreed (      )
                  II.        Agreed (    )
                III.        Strongly Disagreed (         )
                IV.        Disagreed (       )
9.  Monetary policy improve stability in exchange rate.
                    I.        Strongly Agreed (      )
                  II.        Agreed (    )
                III.        Strongly Disagreed (         )
                IV.        Disagreed (       )
10.              Monetary policy, the rise in the value of naira.
                    I.        Strongly Agreed (      )
                  II.        Agreed (    )
                III.        Strongly Disagreed (         )
                IV.        Disagreed (       )
11.              Monetary policy instrument, only tool for Central Bank effective operation.
                    I.        Strongly Agreed (      )
                  II.        Agreed      (       )
                III.        Strongly Disagreed (         )
                IV.        Disagreed (       )
12.              The Central Bank control the activities of other banks through monetary policy
                    I.        Strongly Agreed (      )
                  II.        Agreed (            )
                III.        Strongly Disagreed (         )
                IV.        Disagreed (       )
13.              Monetary policy correct the balance of trade
                    I.        Strongly Agreed (      )
                  II.        Agreed (            )
                III.        Strongly Disagreed (         )
                IV.        Disagreed (       )
14.              Monetary policy control the volume of money in  circulation
                    I.        Strongly Agreed (      )
                  II.        Agreed (    )
                III.        Strongly Disagreed ( )
                IV.        Disagreed (       )
15.              Monetary policy as a tool for economic development
                    I.        Strongly Agreed (      )
                  II.        Agreed (            )
                III.        Strongly Disagreed (         )
                IV.        Disagreed (       )
16.              Monetary policy and Banks performances
                  II.        Strongly Agreed (      )
                III.        Agreed (    )
                IV.        Strongly Disagreed (         )
                  V.        Disagreed (       )

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