THE IMPACT OF ACCOUNTING INFORMATION ON BANK LENDING DECISION.
This study deals with the impact of Accounting Information on Banking Lending Decision, with reference to non Bank PLC Garden Avenue Enugu. To guide the study for research question. Four hypothesis were formulated. A structured questionnaire was used to gather respondents mean and standard deviation were used to research question while t test statistics was used for hypothesis the results were analysed and presented. The results of the findings indicate as significant difference between views of the junior and senior staff of Union Bank. The research finding are in line with previous findings in both developed and developing countries. It also collaborated previous research finding in Nigeria. It was recommended that commercial banks in Nigeria should have virile information and extrerial e
of banks should be established.
Table of content vi
1.1 Background of the study 1
1.2 Statement of problem 5
1.3 Objective of study 5
1.4 Significance of the study 6
1.5 The scope of study 6
1.6 Definition of terms 6
Review of related literature 9
2.1 Definition of accounting information 9
2.2 Forms of financial accounting information 11
2.3 Union bank as users of financial accounting 12
2.4 Union banking lending 13
2.5 Basic principles and canrons of lending 14
2.6 Lending decision 16
2.7 Lending procedures 17
2.8 Role of financial accounting information
in bank lending decision 20
Research design and methodology 24
3.1 Source of data 24
3.2 Location of data 25
3.3 Method of data collection 25
4.1 Research Finding 27
Conclusion and Recommendation 30
5.1 Conclusion 31
1.1 BACKGROUND OF THE STUDY
All the information necessary in the business are being summarized in the Accounting Records to ascertain the efficing and effectiveness of all the business enterprises though the process of accounting.
Accounting may be defined as a set of Rules and Methods by which financial and economic data an collected processed and summarized into report for decision making.
In using data presented to them by customer for the purpose of leveling the bank is interested in financial Accounting Information which enable it reach an initial lean decision and also helps it to monitor progress after the advice has been made.
These information are those that deal with solvency, liquidity and profitability these means obtaining information that will described the client’s financial stand and long term liability. Banks need three basic types of Accounting Information namely:
The score keeping information involves liability and investigation of variance for corrective actions. This is done by campaign expert results with elections implement ex-ante and useful in evolution state of planning.
It also concerned the control principles function of management by exception.
Moreover it bring out problems look into for collective actions.
The problem solving information is useful in the implementation shape of planning since it focuses on analyzing and recommending the best course of action among may courses. It is closely associated with management decision making process and consist of non-routine and ad-loc and special decision.
The objective of the most banking activity is to ensure effective.
Lending and as such lending has become the most important of banking operation. However lending forms the major segment to banking operation. As all known the important of lending in banks activity the needs for a