THE IMPACT OF ACCOUNTING ON BANK LENDING DECISION

ABSTRACT
This study was embarked upon to ascertain one impact of Accountancy knowledge on bank lending decision.  The study has a total of three chapters and first chapter titled the introduction started with preamble.  Here on overview of accountancy knowledge on banking industry was undertaken.The aims and objectives of the study were duly highlighted in chapter one.
The aims and objectives of the study includes; to ascertain fairness, information and knowledge made available to bank management, to banking, the extent to which bank management utilized accounting information in lending decisions, it is likely to inform us of avoidance of bad debt in bank management with the use of accounting knowledge in their lending decision to suggest way which usage of accounting knowledge can be made more effective in bank lending system. And finally, to make recommendation on ways of strengthening the positive contributions of banking sector to the national aconomy.
This study’s aim and objectives were duly reflected in the research hypothesis which includes:-
–   The more bank management utilized accounting information in bank transaction, the greater the tendency to make a profitable lending decision, the extent to which bank management use accounting knowledge to determine the extent to which bad debt can be avoided.
–   The more bank officials verify proposal by the beneficiaries, the more the bank make a profitable investment.Also the significance of the study which include both the theoretical and practical significance explained.
Chapter two included the literature review.  Here the earlier works of erudite scholars, theorist and analysts and its relevance to the study were analyzed. Chapter three is where the findings of the research were highlighted which included, that the accounting knowledge desirable and indispensable in bank lending decision, that the utilization of accounting to a higher percentage leads to profitable investment to the banks than did not employ it.
We equally recommended that the study should be undertaken further and that accounting knowledge should be the basis of granting loans if profitable investment is to be made.  I also recommended that project proposal should be demanded and verified before credit for them is granted.  I finally conclude.  The chapters and the project by admonishing on the importance of utilizing the finding of the research.

CHAPTER ONE
INTRODUCTION
In any business outfit, be it government or privately moment of decision making present challenges to the executive.  Decision taking is the life wire of any organization as the future growth or retardation of the enterprise depends on the soundness of such decision.  The decision making process is confronted by a lot of problems.The dangerous trend in the banking industry has sent a disturbing wave to the national economy.  In a rapid reaction to salvage the banking industry and save the economy from collapse; the government enacted the failed degree and established a tribunal to try the formal decision makers n the banks who have contributed to the bank’s failure.The utilization of accounting knowledge in bank lending decision will make a lot of impact in enhancing bank growth and productivity, the usefulness to the lending decision as it is very useful in all operations in the banks. Osisima (1990) classified accounting knowledge into three integrated parts, which includes store-keeping knowledge attention directing information and problem. Also Nwobodo Okafor (1995) classified accounting knowledge into financial accounting system and management accounting system which includes records of profit and loss of the enterprises business activities and financial decision taken by management.One of the ways bank lend money I through loan and this can be group into short term  and long term loan, they advance money to their customers in various categories.  Before bank lends money, they will make sure the borrowed money is going to be paid back at the appropriate time. They will also know the purpose in which that money is borrowed before affording it to the customer.  Accounting knowledge represents the real life situation of the banks which cannot be ignored in lending.Because of the importance of accounting knowledge in enhancing bank growth and development, we have decided especially in the era when so many banks are distressed and liquidated.

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