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 Ngeria, Umuaha Branch). Mouau.afribary.org: Retrieved Nov 28, 2024, from https://repository.mouau.edu.ng/work/view/impact-of-accounting-information-on-banks-lending-decisions-a-study-of-access-bank-of-ngeria-umuaha-branch-7-2
UDOCHUKWU, AKOBUNDU. "Impact Of Accounting Information On Banks' Lending Decisions. (A Study Of Access Bank Of Ngeria, Umuaha Branch)" Mouau.afribary.org. Mouau.afribary.org, 13 Oct. 2021, https://repository.mouau.edu.ng/work/view/impact-of-accounting-information-on-banks-lending-decisions-a-study-of-access-bank-of-ngeria-umuaha-branch-7-2. Accessed 28 Nov. 2024.
UDOCHUKWU, AKOBUNDU. "Impact Of Accounting Information On Banks' Lending Decisions. (A Study Of Access Bank Of Ngeria, Umuaha Branch)". Mouau.afribary.org, Mouau.afribary.org, 13 Oct. 2021. Web. 28 Nov. 2024. < https://repository.mouau.edu.ng/work/view/impact-of-accounting-information-on-banks-lending-decisions-a-study-of-access-bank-of-ngeria-umuaha-branch-7-2 >.
UDOCHUKWU, AKOBUNDU. "Impact Of Accounting Information On Banks' Lending Decisions. (A Study Of Access Bank Of Ngeria, Umuaha Branch)" Mouau.afribary.org (2021). Accessed 28 Nov. 2024. https://repository.mouau.edu.ng/work/view/impact-of-accounting-information-on-banks-lending-decisions-a-study-of-access-bank-of-ngeria-umuaha-branch-7-2