Impact Of Accounting Information On Bank Lending Decisions: A Survey Of Selected Deposit Banks In Port Harcourt

ABSTRACT

The aim of this study is to analyze the impact of accounting information (in form of financial statements) on Banks lending decisions. This was based on importance of the use of financial statements especially in its ability to bring the transactions of an entity into focus. In other to do this a survey was carried out whereby questionnaires were distributed to bank managers, credit analyst, loans managers and other staff of the bank who are responsible for the advancement of loans to customers. This was supplemented by personal interviews and review of related literature. The analysis of the data showed among other things that the consideration of borrower's financial statement has not fallen into decline in most of the bank in Nigeria, and also that Banks reliance on borrower's financial statements to provide most of the necessary information in which to base their lending decision. In other to improve the efficiency of bank lending and also guarantee the security of loans, it is recommended that banks should set up a market survey team, set up a projecticredit monitoring unit, employ the services of professionals, management team should possess some level of accounting knowledge and a supplementary statement should be indicated in a company's financial statement.