Journal of Positive School Psychology http://journalppw.com 2022, Vol. 6, No. 9, 5135-5145 Monetary Policy And Financial Performance: Empirical Evidence From Listed Deposit Money Banks In Nigeria Lawal Babatunde Akeem 1* , Oyetunji Oluwayomi Taiwo 2 , Adekoya Adesanya Augustine 3 , Aduekpe Precious Edinaeval 4 , Lawal Busayo Olawumi 5 1*,2,4 Department of Accounting & Finance, McPherson University Seriki Sotayo, Ogun State *E-Mail: ab400level@yahoo.com 3 Department of Accounting, Babcock University, Ilishan, Ogun State 5 Dominican University Ibadan, Oyo State *Corresponding Author:- Lawal Babatunde Akeem E-Mail: ab400level@yahoo.com Abstract A thousand and one factors influence firm profitability and overall performance. This study looked at how monetary policies affected the performance of Nigeria's listed deposit money banks. The study's goal is to examine monetary policy instruments such as open market operations, cash reserve requirements, liquidity ratios, and interest rates to determine their impact on banks, whether significant or not, using return on assets as a performance metric. The purposive sampling technique was used to select five quoted deposit money banks in the financial services industry. The study's data came from CBN statistical bulletins and the annual reports of the companies studied, which ranged from 2012 to 2021. Using multiple linear regression and Pearson product correlation analysis, the hypotheses were tested to see if the null hypothesis was accepted or not. According to the study's findings, open market operations have no significant positive effect on the profitability of Nigeria's listed deposit money banks. Further research revealed that cash reserve ratios have a significant positive effect on the profitability of Nigeria's listed deposit money banks. Based on the findings, the study's main conclusion is that monetary policies have a significant influence on the profitability of Nigerian listed deposit money banks when they are pooled together. Among the recommendations was to extend monetary policy beyond OMO because it had no significant influence. According to the study, banks should maintain an adequate cash reserve ratio because it has a significant impact on performance. Deposit money banks should place a greater emphasis on financial performance factors over which they have direct control, such as capital adequacy, asset quality, management efficiency, earnings ability, and liquidity management. Keywords: Cash Reserve Requirements, Monetary Policy, Open Market Operations, Performance, Return on Assets 1.0 Introduction The financial sector is critical, and its importance in driving economic activity in every country, including Nigeria, cannot be overstated. According to Okpara (2009), banks are the primary hub of the public's financial savings, the heart of the payment system, the bodies endowed with the ability to create money and allocate financial resources through which monetary and credit policies are implemented. This obvious fact has made monetary policy instruments indispensable in driving the activities of the Nigerian economy. According to Okpara (2009), the success of monetary policy is heavily dependent on the health of the banking institutions that implement the policies. As a result of banks' central role in the economy, their activities must be closely monitored to ensure that they operate within the law, adopting necessary guidelines to ensure safe and sound practices so that the economy is not jeopardized. As a result, the government generally legislates through the apex bank, the Central Bank of Nigeria, to influence and/or directly control banks' activities to match the set objectives of the economy. Banks' unique role as the engine of growth in any economy is widely recognized around the world. The extent to which banks extend credit to the general public for productive purposes both accelerates a country's economic growth and ensures the banking industry's long-term viability (Kolapo, Ayeni & Oke 2012). As a result, it has been widely observed in Nigeria and other developing countries that prudent monetary policies are the cornerstone of effective regulations and supervision for the growth of any country's banking industry (Sanusi, 2018). Monetary policy is one of the most important players in any economic system. Monetary policy