ABSTRACT

 The study examined the impact of accounting information system on the performance of bank lending system. The objectives ofthe study are; to evaluate the effect ofcompany income tax on gross domestic product ofNigeria, to examine whether profit margin has significant effect on loan and advance, to evaluate -whether return on equity has ignificant effect on loan and advances and to examine whether return on assets has significant effect on loan and advances. To achieve the objective of the study, Survey research design was adopted. The researcher adopted secondary data in getting the required information through financial report of First Bank ofNigeria. In testing the hypotheses the data obtained were tabulated and statistically analysed using percentages, product moment correlation coefficient and the f-ratio. A simple regression analysis was done to check whether the regression coefficients are in line with the apriori economic prescriptions. The study revealed that loan and advances is positively affected by profit margin, return on equity, and return on assets. The study also revealed that there is a very high relationship between profit margin, return on equity, and return on assets and loan and advances. In conclusion, commercial banks remain dominant in the banking system in terms oftheir shares oftotal assets and deposit liabilities. Their total loans and advances, is a major component of total credits to the private sector are still on the increase inspite of the major constraints posted by the government regulations, institutional constraints and other macroeconomic factors. It therefore follows that efforts should be made by commercial banks to enforce the most easily realizable policies and good credit management in every situation. Based on the findings in this study, the following are recommended: commercial banks should develop credit procedures policies and analytical capabilities and these efforts should be expanded into full credit management including origination, approval, monitoring and problem management tailored to the needs of each bank. Commercial banks should strategize on how to attract and retain more deposits so as to further improve on their lending performance. There should be closer consultation and cooperation between commercial banks and the regulatory authorities so that the effect ofregulatory measures on commercial banks will be taken into account at the stage ofpolicyformulation.