The imperatives of e-banking for monetary policy in Nigeria.

Abstract

The electronic delivery of banking services is fast gaining wide acceptance in many jurisdictions including Nigeria. The importance of this channel of banking service delivery has been strengthened by advancement in information and communications technology (ICT) that has reshaped global financial architecture. This paper examines the crucial nature of electronic banking (e-banking) to monetary policy implementation in Nigeria and advocated necessary actions for enhancing the effectiveness and efficiency of monetary policy execution for the achievement of the ultimate target of economic growth and development. It is postulated that, subject to initial conditions and establishment of risk mitigating factors, e-banking is beneficial to monetary policy execution, financial sector and economic development in Nigeria as speed and convenience endears banking culture to greater segment of the economy while the proportion of money stock under the discretionary control of the monetary authorities is increased. Although, some seigniorage income may be lost, the Central Bank of Nigeria's contribution to the economy should be measured in terms of achievement of its mandate of price stability and efficient payments system in a stable financial environment that engenders balanced and sustainable economic growth and development.