A Conceptual Review On The Impacts Of Monetary Policy On Banking Liquidity

The paper discusses the conceptual issues on the impacts of monetary policy on the liquidity of financial institutions. The main objective of the paper is to provide conceptual evidence that monetary policy affects bank liquidity. Conceptual issues were reviewed by several authors from a macroeconomic and financial perspective. The paper further reviewed six transparent guidelines for the central bank of Cameroon (BEAC) as it formulates monetary policy in the country. The paper concluded that financial institutions must remain contingent to monetary policy adjustments and ensure proper liquidity management techniques to mitigate liquidity risks.