IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 6 2024
DOI: 10.56201/ijbfr.v10.no6.2024.pg1.12

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Inflation and Commercial Banks Performance in the Nigerian Economy

ANDABAI, Priye Werigbelegha, Ph.D

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Abstract

The research looks at how Nigerian commercial banks performed from 1993 to 2022 about inflation. To gauge the performance of Nigerian banks, the independent factors are the money supply, inflation rate, and monetary policy rate about the dependent variable, return on assets. The Central Bank of Nigeria's bulletin (2022) provided the study's accessible data. The rate of inflation significantly affects the return on assets in a favourable way. From the analyzed data, it was revealed that the broad money supply significantly affects the return on assets, whereas the monetary policy rate significantly positively affects the return on assets in Nigeria. The research concludes that the two dimensions of inflation—money supply and inflation rate—harm the return on assets held in deposit accounts at banks. According to the study, efficient tracking of the money supply and inflation rate is critical to supporting the banking sector's growth. This is essential since it will benefit businesses and the economy as a whole.

keywords:

Inflation, Commercial Banks, Performance, Nigeria

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