ABSTRACT
Information and information technology have
continued to play a vital role in the operations and performance of business
entities. Banks are not left out as far as this basic requirement is concerned.
The nature of the banks' business, particularly in lending, has necessitated
the use of all available vital information in considering request for loans and
advances. Financial statements comes in readily as tool for assessing the
"health" and future of business. This study was undertaken to
determine the extent to which banks in Nigeria depend on financial statements
as a tool for reaching decisions or requests for loan. The researcher chose
four (4) banks as case study. Interviews and questionnaires were used as
methods for data collection. However, a number of constraints were experienced.
Time and financial constraints were the most serious. The result of the
research showed that banks always demanded financial statements when
considering requests for credit. However, it was also revealed that financial
statement was not a top priority amongst all the factors that influence lending
decisions. Other very influential factors are personality of the prime mover,
his integrity, the viability of the proposed project and evidence of ability to
repay a loan. From t11e outcome of the researcher and following the existing
lending practice, the researcher made some recommendations. One of them is that
banks should continue to insist on financial statements and information for all
credit applications. Such financial statements should be expertly analyzed and
the result used or allowed to influence lending decisions significantly.
Qualified financial analysts should be engaged as financial statement is needed
to monitor lending for the period of credit. Also, it was recommended that
management accounting be extensively used both by the bank and the borrowers to
ensure that both parties act proactively when there is need.
KALU, O (2021). Analysis And Use Of Financial Statements As A Tool For Lending Decision (A Case Study Of Selected Deposit Money Banks In Nigeria). Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/analysis-and-use-of-financial-statements-as-a-tool-for-lending-decision-a-case-study-of-selected-deposit-money-banks-in-nigeria-7-2
OKORO, KALU. "Analysis And Use Of Financial Statements As A Tool For Lending Decision (A Case Study Of Selected Deposit Money Banks In Nigeria)" Mouau.afribary.org. Mouau.afribary.org, 12 Jul. 2021, https://repository.mouau.edu.ng/work/view/analysis-and-use-of-financial-statements-as-a-tool-for-lending-decision-a-case-study-of-selected-deposit-money-banks-in-nigeria-7-2. Accessed 01 Nov. 2024.
OKORO, KALU. "Analysis And Use Of Financial Statements As A Tool For Lending Decision (A Case Study Of Selected Deposit Money Banks In Nigeria)". Mouau.afribary.org, Mouau.afribary.org, 12 Jul. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/analysis-and-use-of-financial-statements-as-a-tool-for-lending-decision-a-case-study-of-selected-deposit-money-banks-in-nigeria-7-2 >.
OKORO, KALU. "Analysis And Use Of Financial Statements As A Tool For Lending Decision (A Case Study Of Selected Deposit Money Banks In Nigeria)" Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/analysis-and-use-of-financial-statements-as-a-tool-for-lending-decision-a-case-study-of-selected-deposit-money-banks-in-nigeria-7-2