ABSTRACT
The role of Central Bank of Nigeria as the apex regulatory authority in the financial system cannot be over emphasized, most especially through the use of the monetary policy to regulate the supply of money in banking operations. The purpose of this research is to find the effect of the monetary policy on banking operations in its bid to regulate the supply of money in the Nigeria economy with special regards to deposit creation and credit allocation. secondary data were collected from journals, magazines, internet, textbooks for the literature review, primary data’s were also collected by the use of questionnaires and personal interviews response were analyzed using the chi-square method of analysis from which findings were made. It was discovered that the monetary policy has tremendous effect on banking operation, base on these findings some useful subjection and recommendations were made for effective management and growth on banking operations.
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