Issues concerning money have contained to cover invest for some money theories.  Money makes life what is and contributes tremendously to the rise or fall in the economic situation of a particular country.  It is as a result of the continuous charge in the behavior of money count theorist come by the financial and economic policies to cushion the harsh effect money causes and to equally improve on the already existing goods policies.
            Emphasis is laid on monetary and fixed policies as concern this project work.  Monetary policies is expressly concerned with the control of monetary supply in the economy. It consists of the instruments and tools which is used by this government to regulate the supply of money in the economy in order to influence the activities in the economy.  Such tools include open market operation, Omo reverse requirement. Monetary policy and tow decision expansion and contrationally policies on the other hand fiscal performs the some function as monetary policy only that it makes use of budgeting and taxation.
            As these polices are made by the government, there is some associated effects it has in the economy as was project work is aimed at knowing actually the effects on First Bank Okpara Avenue Enugu as Commercial Bank.
1.0              INTRODUCTION
2.0       Literature review
2.2       An insight of the monetary, fiscal and other financial sectors policies for the year review
2.3       Monetary and fiscal policies
2.4       The traditional theory of monetary policy
2.5       How monetary policy works to control spending
2.6       How does monetary policy influence economic activities
2.7       Control of commercial banks by the central bank
2.8       Fiscal policy - type
2.9       Fiscal policy as a built in stabilizer
2.10     Fiscal policy and its economic influence
2.11     Fiscal policy in practice
2.12     The fiscal monetary mix
2.13     Summary of related literature
3.0       Summary of findings, conclusions and recommendations
3.1       Findings
3.2       Conclusion
3.3       Recommendation
1.0              INTRODUCTION
According TO Oyindo (1991) monetary policy could
be defined as this combination of measures designed to regulative supply of money to an economy.
Specially, it is designed to regulate the availability cost and direction of credit in order to attain stated national economic objectives.
            Monetary policy usually involves the expansion or contraction of money supply.  This manipulation of interest rates to make borrowing easier and cheaper of more difficult and dealer depending on preventing economic condition and channeling of fund to growth sectors for interest out put monetary policy that regulates the level of money or liquidity in this economy in over to activities some desired policy objectives.
            It ensures that the supply of money and cost of credit to an economy is adequate to support desirable and sustainable growth without generating inflecting pressures that could lend to undue depreciation in the value of local currency.  It consists of instruments and tools which  is used by government to regulate the supply of money in economy in other to influence this activities of economy such tools include.  Open market operation preserve regulate, cash ratio moral suasion etc
            According to Lord Jan Keymes (1936) fiscal policy refers to a manipulative instrument in the banks of government deigned to achieve that mean-economic objectives of the economy.  It deals with decorate exercise of the movement’s power to tax and spend for the purpose of bring the nations output and employment to certain desire level the effect of useful instrument monetary and fiscal policies in commercial banks in this subject matter of this project works.
            The subject of money is as contemporary as the daily newspaper and as old as the history of civilized man the bible says: the love of money is the root of all this (2tim 6: 10) although an exclusive love of money may not be desirables the use of money has always seemed necessary, politician debuted though exaction, endlessly although most people know only that far as they are concerned they never have enough money.
            It is an indisputable fact that money being a desired and useful servant of man, at times misbehaved sometimes a country has so much money that the money free of everything keeps increasing in an inflationary special.  Then the value of money tomorrow in terms of its purchasing power will be less than today on this hands, some times the country seems to have a little money that no one or hardly enjoy has enough to spend when money ins in two short supply, as in the great depression of the 1930’2 when of factors do not turn to as rapid as they can heard lines of unemployed workers forms money can be a great blessing or a great course.
            Money, of course does not come out of this air, some our has to create it.  It is here that this commercial banking system  carries into the picture. Commercial banks are certainly heavily places to store money, in form of banks deposits or to borrow money.  More importantly, they have the unique role in every country’s economy, including Nigeria, of being able to create money, quite, still, this money is not corrected by banks out of nothing. E ach bank can loan only funds which it actually has.  Nevertheless, when a number of banks are all making loans at this same times or buying investments, even money is being created.
            Bank cannot, however, makes loans and investment and thereby create money in an unlimited fashion, the ability of the banking system to act to the money supply depends you this reserve requirement establishments by the monetary and fiscal policies.  Banks are not require to have hundred percent (100%) behind that exposit.  Instead they have a factorable reserve requirement, which allows then to add to their earning assets and thereby increase their deposit liabilities.  One of the deposit liabilities of the commercial banks their demand deposit, is a part of the money supply.
            Efficient management of money stock and their related part growth of any economy.  The earlier mentioned accountancy, fiscal and either banking policies rely on the techniques of financial programming which seek to ensure some consistence  among the economic sectors.  The monetary attempt to established on optimum quality of money consistent attempt to estimate and optimum quality of money consistent with the target for GDP growth, inflation rate and external reserves. Using the computer optimal money supply, the economic absorptive domestic credit is denied, thereby permitting growth targets to be determined for some of the intermediate policy variable of money supply and aggregate.
Digestive credit.  The permissible segregate domestic in them allocated between theis governed and private sectors.  The portion taken up by the government is determine by the size of the budget deceit to be financed by the banking system comprising the CBN and Commercials and Merchant banks.  This balances is calculated to the private sector this process has allocated the CBN to influence credit growth either directly under the regime of credit ceilings or indirectly through market based instruments, subject to the size foot fiscal defect financed by banking system.
            In the era of direct monetary control, the major instruments of policy comprised credit earning imposed on banks administratively fixed interest rates and exchange rate, mandatory on the effectiveness of monetary policy and are financial sector became consommé, the phased movement to the direct approach was initiated in 1992 under which greater reliance is placed are the use of market based on instruments such as reserve requirements, the discount rate of own market operations, to effectively operate the new system indirect monetary control required a deregulation, the target of deregulation usually interest rate, the market for government debt instruments and exchange rates.
            Other measures taken to strengthen the financial sector to enhance monetary and fiscal policies include during excess liquidity in the system.
            Although the power of the CBN to control the monetary and banking system has been enhance in percent years though the enabling laws, so that other issues which impinges on the banks ability to effectively discharge its primary mandate remain emerge, unresolved.  As we are aware that primary function revolves ground maintaining monetary stability and sound financial structure which would ensure an effective payment system.
            It remains a fat that over the year fiscal expansion has been the basis of CBN’s ability to perform this role.
Although available provision figures show that some progress has been made in  this direct monetary and fiscal and banking activities are still constrained by fiscal operations.
            Commercial Banks are set into reasonable by the problem, the CBN encounters in formulating these policies these problems are relative when compared with other banks at times, these monetary policy designed by the CBN for Commercial Merchant and  other banks can never be favourable to some section of this bank.
            Monetary abs fiscal policies are instrument used by the government in this saddle the cannot of nation’s and states economic activities.  The type and inconsistency in the use of particular policy depend so much on this economic situation prevalent in the economy.  The succeeds and short comings of such polices, difficulties involved in implementing these policies and social deposition and preparedness in occupying the policies.
            Economic polices can never be sustained in a convicting like Nigeria whose social political climate is instable and discouraging.  Implementation process and success depends on the activities of other sectors of the economy over than of the public/government sectors namely private sectors and the external sectors.
            In the private sectors, the Commercial Banks are in the centre stage of economic activities. Their characteristics profit orientation and industrialism.
Approach to general economic situation are not always the same direction with the government policies.  This of course provide little and sometimes no opportunity for success in achieving the objectives of these policies.
            Thus, if calls for a clear and appropriate understanding of those inter-section interaction and conflict of operation, to enhance proper and efficient co-ordination.  Inclusive also in the problem that militate against the surround of the monetary and fiscal policies is deep reaction and hard times to the extent of laying off many of their wonder and closure of some of their branches.
 1.2              OBJECTIVES OF THE STUDY
The initiate behind this cook is to peep into some or
one of the numerous economic problem associated with the formulation of the monetary and fiscal policy on Commercial Bank.
Inclusive in the objectives are: -
i.                    To find the extend the current economic situation prevalent in the economy affects the survival of these policies in Commercial banks.
ii.                  To ascertain the extent the unstable social-political eliminate in the country effects the sustenance of these policies of first bank Plc.
iii.                To study the numerous problems associated with the altercation of difficult section of the economy in typed mixed economy of a developing country like Nigeria.
iv.                To find out the extent of problem of deep recession and hard times, to the existent of laying off many wonders and closure of some to their branches.
It is obvious that the Nigeria economic appears not to
amenable to convention economic prescription which worked in other countries.
In trying to dustily policy reforms initiated under the suspires of the same such liberalization of banking internal, deregulation of interest rate and exchange rate privatilizaiton etc.  In view of crisis has failed the federation with economic reform with this view implies is understandable because reform do not deliver tangible within a reasonable time lead to engender fatigue.
            However, what actually happened was not fedora to faithful implementation, take for instance the issue of interest rate regulation, when it was introduced in August 1987, the pre-condition such as macro economic stability fiscal liability, healthy and competitive banking sector were largely absent.
            Consequently, interest rate surge to unsuitable high level driven by fiscal deficit high inflation etc. also the case of exchange rate deregulation.  Here again, the problem was policy inconsistency and infidelity in the absence of fiscal displane, compel, emanatory measure and the political was resolutely implement exchange rate reform, the naira depreciated persistency and remain unstable for most of the period 1984 to 1986.
            However, with the emergences of fiscal displine, high monetary policy and a sanitized banking sector, exchange rate reform because it is super.
Moreover drastic reduction in the rate of inflation from all time high of 72.8% in 1998 to 29.3% in 1999 was as a result of effective demand management measures.
            With the above mentioned management measures monetary and fiscal displine, there should be a doubt that economic policy measure can worth but in our commercial banks in  Nigeria.  The requirement for the successful policies include:
i.                    Improving the current economic situation prevalent in the economy.
ii.                  To ensure useful solution to the unstable socio-political climate of the country
iii.                To ensure useful solution of misunderstanding of art later-sectoral interaction and conflict of operation in commercial banks
iv.                To provide basic information on hard economic crunch that befact the country.
The following hypothesis would be empowering tested in
other to carry out this study
HO1: the effect of the Nigeria monetary and fiscal policies on
commercial banks have resulted to low inters rate
HO2:    The Nigeria monetary and fiscal policies has aversely affected the policies of commercial banks.
HO3:    The present economic situation in the country is negatively.
HO4:    The effect of the Nigeria monetary and fiscal policies on commercial bank have not resulted on an increase in efficient bank operations.
HO5:    The poor supervisory roles of the CBN on this commercial banks have brought about very poor effect on the Nigeria monetary and fiscal policies.
HO5:    The present economic situation in the country has the natively affected the implementation of the Nigeria fiscal and monetary polices on commercial banks.
1.5              SCOPE OF THE STUDY
This work covers the various effect of monetary and fiscal
polices have in the development of commercial bank with special relevance to First Bank of Nigeria Plc., Okpara Avenue remain charge on.


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    Project Details

    Department Accounting
    Project ID ACC0200
    Price ₦3,000 ($14)
    CHAPTERS 3 Chapters
    No of Pages 47 Pages
    Methodology Descriptive
    Reference YES
    Format Microsoft Word