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 affective 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.