D.  Examining the financial environment  The fourth point I would like to make is that assessment of monetary policy effects requires examination of the overall financial environment, including not only the level of nominal shortterm interest rates but also developments in various other interest rates, the state of financial markets' functioning, and the lending stance of financial institutions.
As much as possible, the CBN has avoided direct intervention in development financing, particularly where lending at interest rates below the market rates are involved. The Bank has, in this regard, embarked on schemes to establish quasi-government institutions and encouraged government funding through the Budget.