MONEY MARKET INSTRUMENTS ON THE DEVELOPMENT OF THE FINANCIAL SECTOR IN NIGERIA

Abstract

This investigation inspected the impact of money market instruments (MMIs) on the development of the financial area in Nigeria for the period 2000 – 2018. The information for the examination were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin. The examination utilized econometric strategies like Unit Root Test, numerous relapse and Granger Causality Test to dissect information gathered from the investigation. the examination of information, a relapse model of the accompanying request was created to catch the causality connection between TBs, CPs, BAs and Banking Sector GDP. This investigation on the connection between depository charges (TBs) Commercial paper (CPs), Bank acceptances (BAs) and banking area GDP (the reliant variable) while TBs, CPs, and BAs utilized as intermediary for currency market are the autonomous factors. The investigation utilized ex-post facto research plan which manages previously existing information. The ordinary least square model assessment uncovered explicitly that (MMIs (depository charges, business papers, and government security) have positive connections and critical impacts on bank execution in Nigeria. Quite, depository charges, business papers and government bonds were the fundamental supporters of bank execution while investors’ acknowledgment has a negative relationship and essentially affected unfavorably on bank execution. The examination suggested that, arrangement creators and partners in the business ought to escalate endeavors towards further developing strategies and changes that support interest in money market instruments by banks for more prominent execution and maintainable development. Keywords: Bank Performance, Bankers Acceptance, Commercial Papers and Treasury Bills.