FINANCIAL STATEMENT ANALYSIS AS A BANK LENDING DECISION
- Project Research
- 1-5 Chapters
- Quantitative
- Simple Percentage
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
Commercial banks perform numerous functions. One of the most profitable investments of the commercial banks is granting of loans and advances to those customers that need such including business organization as loans are always needed to enhance profitability of such organization and help them execute such projects, which their capital cannot finance. These are factors, which banks do consider before granting such loans. The research work is geared toward finding out the role which financial accounting information plays in lending decision making of the banks using First Bank of Nigeria PLc Okpara Avenue Branch, Enugu state as case study. The study specifically was aimed at determining the extent to which the financial accounting information presented by prospective borrowers influence lending decisions; determine whether the banks always demand for financial statements from their customers while making decisions; ascertain the extent to which adequate use of accounting information reduce bad debts; ascertain the extent to which improve accounting records by borrowers have contributed to non-repayment of loans; find out the extent to which poor financial positions of prospective borrowers has led to non-approval of loan and then make recommendation that will lead to efficiency in bank lending decisions. The study adopted the survey research design and randomly enrolled participants in the study. A total of 30 responses were validated from the enrolled participants where all respondent are active staffs of First Bank branch in Okpara Avenue, Enugu State. The findings of this study revealed that banks always demand for financial statement from their customers while making lending decision. Also, the financial accounting information presented by prospective borrowers has influence lending decisions in a very high extent. Also, adequate use of accounting information has to an extent reduce incidence of bad debts. The study therefore recommends that both commercial and none commercial banks should develop or acquire technological systems which would be more effective in keeping and generating financial information of a given entity and also aid the verification of such account to help determine the eligibility status of such an entity before loans are granted. This will save the bank from the risk of bad debts and other forms of risk that many arise as a result of money lending.
Related Project Materials
THE ROLE OF MODERN TECHNOLOGY IN ACHIEVING COMMUNICATION EFFICIENCY IN NIGERIA
EXCERPT FROM THE STUDY
The concept of mass communication as practised in traditional journalism is one in which tho...
STAFF PERFORMANCE APPRAISAL AND MOTIVATION IN BUSINESS ORGANIZATIONS
ABSTRACT
This study examines the relationship between staff performance appraisal and Motivation and Employee productivity, using Nigeria...
AN INVESTIGATION ON THE USAGE OF COMPUTER BASED TEST ON THE PERFORMANCE OF SECONDARY SCHOOLS STUDENTS IN NIGERIA
ABSTRACT
This study was carried out on the investigation on the usage of computer based test on t...
ASSESSMENT OF RATIONAL USE OF ANTIRETROVIRAL DRUGS IN HEALTH INSTITUTIONS IN NIGERIA
ABSTRACT
With the national prevalence of 5.0% in Nigeria, HIV infections have become one of the most dreadly medical challenges. Availabi...
POLICY IMPLEMENTATION AND ACHIEVEMENT OF QUALITY EDUCATION
ABSTRACT
In many developing nations of the world, Nigeria not an exception, education is regarded...
PHYTOCHEMICAL AND ANTIVENOM STUDIES ON THE STEM BARK OF ALBIZIA CHEVALIERI HAMS (MIMOSACEAE) ON NAJA NIGRICOLLIS BROADLEY ENVENOMATED MICE
ABSTRACT
Albizia chevalieri Hams (Mimosaceae), mostly found in the Northern Sahel Savannah region of Nigeria as well as in Nigér a...
ASSESSING THE BENEFITS OF EARLY CHILDHOOD EDUCATION IN EMPOWERING MARGINALIZED COMMUNITIES
ABSTRACT: Assessing the benefits of early childhood education in empowerin...
A Discourse on Accumulation and the Contradictions of Capitalist Development in Nigeria
ABSTRACT
The study examines and conceptualizes accumulation in the context of Nigeria‟s neocolonial state. It investigates the nature of...
THE ROLE OF SMALL AND MEDIUM SCALE ENTERPRISES IN UNEMPLOYMENT REDUCTION IN NIGERIA
Abstract
This is study is on the role of small and medium scale enterprises in unemployment reduction in Nigeria....
STUDENTS PERCEPTION OF SECRETARIAL PROFESSION IN THE ERA OF INFORMATION AND COMMUNICATION TECHNOLOGY
Abstract
The functions and effectiveness of the secretary in every business organization depends on the availability of...
