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THE IMPACT OF ACCOUNTING INFORMATION ON BANK LENDING DECISIONS. A CASE STUDY OF UNITED BANK FOR AFRICA (U.B.A), ENUGU.

  • Type:Project
  • Pages:80
  • Format:Microsoft Word
(Accounting Project Topics & Materials)
ABSTRACT
This research work seeks to unravel al the ambiguities and uncertainties  on the extent to  which  banks  rely on the accounting information submitted by their customers before granting  them credit,
The commercial objective  of banks  is to maximize profit, tough other social and economic functions tend to deflect banks from profits maximization and their primary objective. Banks  are acknowledge agents of  social , economic  and political  development. As agents of development, they provide loans and advances including  variety of contingent facilities, which  could either be short-term or long-term.
To keep  up their objective and avoid  the incidence of bad  debts, it is very important for the banks to make effective use of the accounting  information  for credit analysis .
When  a request  for a loan is received, it is important to ascertain the credit worthiness of  the borrowers, and if it is a limited  company,  it is necessary to pursue  its Memorandum and  Articles  of Association to see if there are proclaiming  clauses of limitations on borrowing .
The importance of credit analysis  in the decisions  making process is to  ensure that through an in-depth  analysis  of the risks and prospects involved in ac credit proposition , the right decision  is reached  which  indicates if the amount borrowed can be  repaid , by  what means and at  what time.. in order  to elicit  this  vital information, the banker uses a number of qualitative and quantitative  techniques  which are by no means  important in themselves  but which  depend mainly on the uses made by the analyst  of the accounting information provided. In some cases. The effective use of such skills and analytical tools could  open up areas of  investigation on s which  further questions should be asked  of the loan applicant. It might also necessitate the need to undertake  visit to factory sites or offices, operational centres fro additional on- investigations. The general  mistakes which most credit analyst  make is to assume that two companies  can be  exactly the same  even whine they appear on the surface  to have similar resource case. In this regard,, the use of ratios are similar do not imply that companies  have similar  financial requirements. Each  company ha s its distinct set-up and should  be treated  as such, rather than classified  into straight jackets. Once this principles  of corporate  uniqueness is accepted, the  greatest impediment to good credit analyst function designed to facilitate qualitative lending decisions will have to be removed.             

       TABLE OF CONTENT
Title Page              i
Approval Page…      ii
Dedication     iii
Acknowledgement     iv
Abstract     v
Table of Content    vi

CHAPTER ONE:
1.0: INTRODUCTION 1
1.1: Background of the Study 1      1.2: Statement of the Problem 3    
1.3: Objective of the Study     3
1.4: Research Question and Hypothesis …     4
1.5: Significance of the Study… 5
1.6: Scope and Limitation of the Study 5
1.7: Definition of terms …         6

CHAPTER TWO: 
2.0: LITERATURE REVIEW … …   11       
2.1: Theoretical review of literature  …   11
2.2 Accounting Information – an Overview     11
2.3: Commercial Bank Lending   17
2.4: Role of Accounting information in bank lending decision                     17
2.5: Basic types of ratios … 22
2.6: Empirical review literature       35

CHAPTER THREE:
 3.0: Researcher Design and  Methodology      39
3.1: Research Design …   39
3.2: Method of Data Collection ...      40
3.2.1: Primary Data      41
3.2.2: Secondary Data …   41
3.3: Sampling size      41
3.4  Source of Data     43

CHAPTER FOUR 
4.0: Data presentation  analysis and interpretation
44-57 
 
CHAPTER FIVE 
5.0: finding, Recommendation and conclusion 58
5.1: Findings 58
5.2: Recommendation 60
5.3: Conclusion 62
RESEARCH QUESTIONNAIRE … 63
BIBLIOGRAPHY:

THE IMPACT OF ACCOUNTING INFORMATION ON BANK LENDING DECISIONS. A CASE STUDY OF UNITED BANK FOR AFRICA (U.B.A), ENUGU.

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Details

Type Project
Department Accounting
Project ID ACC2000
Price ₦3,000 ($9)
No of Pages 80 Pages
Format Microsoft Word

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    Details

    Type Project
    Department Accounting
    Project ID ACC2000
    Price ₦3,000 ($9)
    No of Pages 80 Pages
    Format Microsoft Word

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