Oparaocha Francis Ekene

The study examines the effect of monetary policy tools on deposit money banks performance in Nigeria for the period 2014-2023. The study employed the descriptive statistics, correlation analysis and the Panel Least Square (PLS) methodology to analyze the annual time series data sourced from CBN Statistical Bulletin. The findings specifically found that monetary policy rate has significant negative effect on deposit money banks performance. Cash reserve did not significantly affect deposit money banks performance during the studied period. Money supply has a significant positive effect on deposit money banks performance in Nigeria. The study concludes that monetary policy tools significantly influences deposit money banks performance in Nigeria during the studied period. The study recommends that regulatory authority (CBN) should reduce the current monetary policy rate in order to reverse its negative effect on deposit
money banks performance. Increase in money supply improves the performance of deposit money banks. Thus, increase in money supply should be maintained within acceptable threshold to enable the deposit money banks to sustain its positive effect on their performance.