{"id":3300,"date":"2024-12-06T18:13:32","date_gmt":"2024-12-06T18:13:32","guid":{"rendered":"https:\/\/journals.amssr.org\/grjhpa\/?p=3300"},"modified":"2024-12-06T18:52:27","modified_gmt":"2024-12-06T18:52:27","slug":"effect-of-monetary-policy-on-financial-services-insurance-industry-perspective-in-nigeria","status":"publish","type":"post","link":"https:\/\/journals.amssr.org\/grjhpa\/2024\/12\/06\/effect-of-monetary-policy-on-financial-services-insurance-industry-perspective-in-nigeria\/","title":{"rendered":"Effect of Monetary Policy on Financial Services: Insurance Industry Perspective in Nigeria"},"content":{"rendered":"\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/journals.amssr.org\/grjhpa\/wp-content\/uploads\/sites\/5\/2024\/12\/Effect-of-Monetary-Policy-on-Financial-Services_-Insurance-Industry-Perspective-in-NigeriaONUOHA-OKPARAKA.-EFFECT-OF-MONETARY-POLICY-ON-FINANCIAL-SERVICES.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of Effect of Monetary Policy on Financial Services_ Insurance Industry Perspective in NigeriaONUOHA &amp; OKPARAKA.. EFFECT OF MONETARY POLICY ON FINANCIAL SERVICES.\"><\/object><a id=\"wp-block-file--media-53b83ebe-905a-455d-a4f4-ebe0e8f6728f\" href=\"https:\/\/journals.amssr.org\/grjhpa\/wp-content\/uploads\/sites\/5\/2024\/12\/Effect-of-Monetary-Policy-on-Financial-Services_-Insurance-Industry-Perspective-in-NigeriaONUOHA-OKPARAKA.-EFFECT-OF-MONETARY-POLICY-ON-FINANCIAL-SERVICES.pdf\">Effect of Monetary Policy on Financial Services_ Insurance Industry Perspective in NigeriaONUOHA &#038; OKPARAKA.. EFFECT OF MONETARY POLICY ON FINANCIAL SERVICES<\/a><a href=\"https:\/\/journals.amssr.org\/grjhpa\/wp-content\/uploads\/sites\/5\/2024\/12\/Effect-of-Monetary-Policy-on-Financial-Services_-Insurance-Industry-Perspective-in-NigeriaONUOHA-OKPARAKA.-EFFECT-OF-MONETARY-POLICY-ON-FINANCIAL-SERVICES.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-53b83ebe-905a-455d-a4f4-ebe0e8f6728f\">Download<\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Abstract<\/h2>\n\n\n\n<p><strong>Research Objective:<\/strong> This study examined the effect of monetary policy on financial services, specifically focusing on the insurance industry in Nigeria. It investigated the extent to which money supply affects the Nigerian insurance industry and assessed the impact of interest rates on insurance and financial services in the country.<\/p>\n\n\n\n<p><strong>Methodology:<\/strong> An econometric model was developed using the Ordinary Least Squares (OLS) estimation technique. In this model, financial services, measured as a percentage of commercial exports, were regressed on interest rates and money supply (MS) to determine the relationship between these variables.<\/p>\n\n\n\n<p><strong>Findings:<\/strong> The results showed a positive but insignificant relationship between interest rates (INTR) and financial services. Additionally, there was a negative and insignificant relationship between money supply and financial services. This suggests that neither interest rates nor money supply have a significant direct effect on the financial services sector, particularly the insurance industry.<\/p>\n\n\n\n<p><strong>Conclusion:<\/strong> The study concluded that monetary policy, specifically money supply and interest rates, does not have a significant impact on the financial services sector in Nigeria. However, the findings highlight the importance of effective monetary management for broader economic stability.<\/p>\n\n\n\n<p><strong>Recommendation:<\/strong> The study recommends that the monetary authorities focus on prudent management of money supply to foster economic growth. Additionally, the government should take proactive measures in addressing interest rate issues, as these could have significant implications for the functioning of financial services, particularly the insurance industry.<\/p>\n\n\n\n<p><strong><em>Key words: <\/em><\/strong><em>Monetary Policy, Financial Services, <\/em><em>Money supply, Interest rate.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">References<\/h2>\n\n\n\n<p>Abakpa, A., Purokayo, S. G. &amp; Asaph, P. P. (2018). Analysis of the determinants of money supply in Nigeria (1981-2015). International Journal of Scientific Research. 3(2): 21-38.&nbsp;<\/p>\n\n\n\n<p>&nbsp;Andersen, L. C. &amp; Jerry, L. J. (1968). The monetary base-explanation and analytical use. Review, Federal Reserve Bank of St. Louis. 50(8):7-11.<\/p>\n\n\n\n<p>&nbsp;Bain, K. &amp; Howells, P. (2003). Monetary economics: Policy and its theoretical basis. New York. Palgrave Macmillan publisher.<\/p>\n\n\n\n<p>&nbsp;Bakare, A. S. (2011). An empirical study of the determinants of money supply growth and its effects on inflation rate in Nigeria. Journal of Research in International Business and Management. 1(5): 124-129.<\/p>\n\n\n\n<p>Adeyeye, E.A., &amp; Fakiyesi, T.O.(1980). Productivity, prices and income board and Anti-inflationary policy in Nigeria, In Nigerian economy under the military, proceedings of the Annual Conference of the Nigerian Economic Society, Ibadan.<\/p>\n\n\n\n<p>Ajie, H.A., Akekere, J., &amp; Ewubare, D.B.(2007).Issues in macroeconomics. Port Harcourt, Nigeria: Pearl Publishers.<\/p>\n\n\n\n<p>Alturki, F., &amp; Vtyurina, S. (2010). Inflation in Tajikistan: Forecasting analysis and monetary policy challenges.(WP\/10\/17).<\/p>\n\n\n\n<p>Chigbu&nbsp;&amp;&nbsp;Okorontah&nbsp;(2013). the exogeneity of the money supply in. 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The effect of Macroeconomic variables on the asset positions and financial performance of Non-banking financial institutions in Jamaica; <em>journal of business and social sciences, 2, 186-201<\/em><\/p>\n\n\n\n<p>Lodha, S. L. &amp; Lodha, M. (2012). Money stock determinants: high powered money and money multiplier. Journal of Economics and Sustainable Development, 3(9):83-96.<\/p>\n\n\n\n<p>&nbsp;Lone, N. A &amp; Yadav, D. K. (2016). Determinants of money supply in India: A post reform scenario. IOSR Journal of Economics and Finance (IOSR-JEF). 7(5): 39-48.<\/p>\n\n\n\n<p>&nbsp;Mansaray, M. &amp; Swaray, S. (2013). Financial liberalization, monetary policy and money demand in Sierra Leone. Journal of Monetary and Economic Integration. 12(2):61-90<\/p>\n\n\n\n<p>&nbsp;McKinnon, R. I. (1973). Money and capital in economic development. Washington DC. The Brookings Institution.<\/p>\n\n\n\n<p>&nbsp;Muhammad, M. A. &amp; Islam M. I. (2010). Money supply function for Bangladesh: An Empirical analysis. AIUB Bus Econ Working Paper Series<\/p>\n\n\n\n<p>&nbsp;Narayan, P. K. (2004). Reformulating critical values for the bounds f-statistics approach to cointegration: An application to the tourism demand model for Fiji. Department of Economics, Monash University Discussion Papers.<\/p>\n\n\n\n<p>Odior, E. S. (2013). Pure portfolio approach to money supply determination in Nigeria: A generalized method of moments approach. Journal of Finance &amp; Economics. 1(1):10- 26&nbsp;<\/p>\n\n\n\n<p>Onwumere J. U. J., Imo G. &amp; Ugwuanyi, U. B. (2012). \u201cDoes open market operations as a monetary policy tool have an impact on price stability in Nigeria?\u201d Research&nbsp;<\/p>\n\n\n\n<p>Onwumere, J.U.J. (2005). Business and economic research methods. Lagos, Nigeria: Don-Vinto Ltd. Central bank of Nigeria publications; 2022.<\/p>\n\n\n\n<p>Orubu, C. O. (2009). Inflation in Nigeria: Concept, measurement and control, Bullion, 33, (1).<\/p>\n\n\n\n<p>Oyejide, T. A. (1992). Deficit financing, inflation and capital formation: An analysis of the Nigerian experience 1957-1970. Nigeria Journal of Economics and Social Studies, 14(10), 27-43.<\/p>\n\n\n\n<p>Shirvani, H. M &amp;&nbsp;Bayram, S.G (2014). The relative importance of the determinants of the. US&nbsp;<\/p>\n\n\n\n<p>money supply. Research in Business and Economics. Journal of applied statistics 123-143.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Abstract Research Objective: This study examined the effect of monetary policy on financial services, specifically focusing on the insurance industry in Nigeria. It investigated the extent to which money supply affects the Nigerian insurance industry and assessed the impact of interest rates on insurance and financial services in the country. Methodology: An econometric model was developed using the Ordinary Least Squares (OLS) estimation technique. In this model, financial services, measured as a percentage of commercial exports, were regressed on interest [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3282,"comment_status":"open","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22,27,25],"tags":[35,34],"class_list":["post-3300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-grjhpa","category-issue-1-volume-1","category-volume-1","tag-okparaka-vincent-chukwuka-phd","tag-onuoha-donatus-chinedu"],"_links":{"self":[{"href":"https:\/\/journals.amssr.org\/grjhpa\/wp-json\/wp\/v2\/posts\/3300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/journals.amssr.org\/grjhpa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/journals.amssr.org\/grjhpa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/journals.amssr.org\/grjhpa\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/journals.amssr.org\/grjhpa\/wp-json\/wp\/v2\/comments?post=3300"}],"version-history":[{"count":2,"href":"https:\/\/journals.amssr.org\/grjhpa\/wp-json\/wp\/v2\/posts\/3300\/revisions"}],"predecessor-version":[{"id":3305,"href":"https:\/\/journals.amssr.org\/grjhpa\/wp-json\/wp\/v2\/posts\/3300\/revisions\/3305"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/journals.amssr.org\/grjhpa\/wp-json\/wp\/v2\/media\/3282"}],"wp:attachment":[{"href":"https:\/\/journals.amssr.org\/grjhpa\/wp-json\/wp\/v2\/media?parent=3300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/journals.amssr.org\/grjhpa\/wp-json\/wp\/v2\/categories?post=3300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/journals.amssr.org\/grjhpa\/wp-json\/wp\/v2\/tags?post=3300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}