EFFECT OF INTEREST RATE ON LOAN REPAYMENT IN THE NIGERIA BANKING INDUSTRY (A STUDY OF MICRO FINANCE BANK KWALE DELTA STATE)

ABSTRACT The focus of this research work is on the “Effect of Interest Rate on Loan Repayment in the Nigeria Banking Industry, using Microfinance Bank, Kwale, Delta State, Nigeria as the focal point. The scope of this research work covers all commercial banks in Nigeria. Relevant information was drawn from textbooks, internet, publications, journals and other research work on the topic. Primary data were collected using questionnaire which were distributed to the staff of the Bank. The responses from the questionnaires were properly analyzed which revealed the following findings, these include: (1.) Cash reserve ratio has played significant role in the performance of (OMO) and this remained the tool of liquidity management.(2.) The CBN sustained the use of the monetary policy rate and other interest rate. Owing to this discovery, the researcher made a number of recommendations which include: Monetary policy should be reviewed from time to time for better results. The problem of excess liquidity mop up exercise and the monetary authorities should give pattern their interest rate according to the economy of the Nation it services..