ABSTRACT
The topic of the
research study is the impact of accounting information on banks' lending
decisions and the PUFPOSC of the study is to review the impact ol' accounting
information on banks' leciding decisions. The work was carried out through the
administration of questionnaires, oral interview and observation recorded by
the researcher. The population of the study consisted of eighty (80) member
staff and customer's of Access Bank of Nigeria Plc, Umuahia Branch, and the
sample size is sixty seven (67) by using Yaro's statistical formular. Data
collections were collected through the use of primary data and secondary data.
Granting of loans and advances to those that need such including business
oiganizalions is one of the most piotilab%e iir'estments of coTrmleTcial bank.
Such loans enhance profitability of such organization and help them execute
such projects which their capital cannot finance. This research work is tailored
towards finding out the role played by financial accounting information in
lending decisions making of the banks. The main objective of the 'study is to
examine the impact of accounting infonnation on banks' lending decisions. The
hypothesis testing of study includes; banks always demand lbr borrowers'
linancial statements before taking decisions. Accounting information has no
significant effect in bank's lending decisions. Adequate use of accounting
information has not contributed to reduction in the incidence of bad debts.
From the findings, it is seen that accounting information is important in
bank's lending decisions. Conclusion, banks make adequate use of accounting
information in making decisions, although the extent to which they use the
financial statement differ from one bank to another. Thus, the financial
statement required from customers is profit and loss account, balance sheet and
sometimes fund flo-w statement. Recommendation, banks should intensify their
demand on the customers providing accounting information when they are making
proposals for loans. Banks should also demand for collateral security from
their customers to ensure that borrowed loans are paid as at when due.
AKOBUNDU, U (2021). Impact Of Accounting Information On Banks' Lending Decisions. (A Study Of Access Bank Of Nger1a, Umuahia Branch). Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/impact-of-accounting-information-on-banks-lending-decisions-a-study-of-access-bank-of-nger1a-umuahia-branch-7-2
UDOCHUKWU, AKOBUNDU. "Impact Of Accounting Information On Banks' Lending Decisions. (A Study Of Access Bank Of Nger1a, Umuahia Branch)" Mouau.afribary.org. Mouau.afribary.org, 14 Oct. 2021, https://repository.mouau.edu.ng/work/view/impact-of-accounting-information-on-banks-lending-decisions-a-study-of-access-bank-of-nger1a-umuahia-branch-7-2. Accessed 01 Nov. 2024.
UDOCHUKWU, AKOBUNDU. "Impact Of Accounting Information On Banks' Lending Decisions. (A Study Of Access Bank Of Nger1a, Umuahia Branch)". Mouau.afribary.org, Mouau.afribary.org, 14 Oct. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/impact-of-accounting-information-on-banks-lending-decisions-a-study-of-access-bank-of-nger1a-umuahia-branch-7-2 >.
UDOCHUKWU, AKOBUNDU. "Impact Of Accounting Information On Banks' Lending Decisions. (A Study Of Access Bank Of Nger1a, Umuahia Branch)" Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/impact-of-accounting-information-on-banks-lending-decisions-a-study-of-access-bank-of-nger1a-umuahia-branch-7-2