EFFECT OF ACCOUNTING INFORMATION ON LENDING DECISIONS OF COMMERCIAL BANKS: A STUDY OF SELECTED BANKS IN NIGERIA

ABSTRACT The research work is geared forward finding out the role which financial accounting information plays in lending decision making of the banks. The objectives amongst others include to know whether the banks do demand for financial statement from their customers while making lending decision, the extent to which they are influenced by such statements, the extent to which adequate use of accounting information has led to reduction an incident of bad debt. 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. A work of this nature will be of help to different groups including commercial banks, other lending institution credit analysis the government etc.