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.
TABLE OF CONTENT
TITLE PAGE
APPROVAL PAGE
DEDICATION
ACKNOWLEDGEMENT
ABSTRACT
TABLE OF CONTENT
CHAPTER ONE
1.0
INSTRODUCTION
1.1
STATEMENT OF THE PROBLEM
1.2
AIMS
AND OBJECTIVES OF THE STUDY
1.3
THE
SIGNIFICANCE OF THE STUDY
1.4
SCOPE
AND LI MITATION OF THE STUDY
1.5
DEFINITION
OF TERM
CHAPTER TWO
2.0
LITERATURE
REVIEW
2.1
DECISION MAKING AND OVERVIEW
2.2
ACCOUNTIN
KNOWLEDGE AND BANKING SERVICES
2.3
THE
BANKING SYSTEM AND NATIONAL ECONOMY
2.4
THE
ROLE OF ACCOUTING KNOWLEDGE IN BANKING
CHAPTER THREE
3.0
SUMMARY
OF FINDING
3.1
DISCUSSION
OF FINDING
3.2
CONCLUSION
3.3
RECOMMENDATIONS
BIBLIOGRAPHY
CHAPTER
ONE
INTRODUCTION
In any business outfit,
be it government or privately moment of decision making present challenges to
the executive. Decision taking is the
life wire of any organization as the future growth or retardation of the enterprise
depends on the soundness of such decision.
The decision making process is confronted by a lot of problems.
The dangerous trend in the banking
industry has sent a disturbing wave to the national economy. In a rapid reaction to salvage the banking
industry and save the economy from collapse; the government enacted the failed
degree and established a tribunal to try the formal decision makers n the banks
who have contributed to the bank’s failure.
The utilization of accounting knowledge
in bank lending decision will make a lot of impact in enhancing bank growth and
productivity, the usefulness to the lending decision as it is very useful in
all operations in the banks.
Osisima
(1990) classified accounting knowledge into three integrated parts, which
includes store-keeping knowledge attention directing information and problem.
Also Nwobodo Okafor (1995) classified
accounting knowledge into financial accounting system and management accounting
system which includes records of profit and loss of the enterprises business
activities and financial decision taken by management.
One of the ways bank lend money I
through loan and this can be group into short term and long term loan, they advance money to
their customers in various categories.
Before bank lends money, they will make sure the borrowed money is going
to be paid back at the appropriate time.
They will also know the purpose in which that money is borrowed before
affording it to the customer. Accounting
knowledge represents the real life situation of the banks which cannot be ignored
in lending.
Because of the importance of accounting
knowledge in enhancing bank growth and development, we have decided especially
in the era when so many banks are distressed and liquidated. As students of accountancy, we want to know
whether accounting information are useful in bank lending decision.
1.1
STATEMENT OF THE PROBLEM
Recent developments in the banking
industry in Nigeria
have shown that most of the banking management and decision takes have grossly
violation affected in the violation of the operation. Most affected in the violation of the banking
regulation is the misuse and abuse and total neglect of accounting information
in bank lending decision.
The problem in the banking sector has
not only contributed to the crippling of the nations economy but has also
negatively affected ordinary Nigeria who have deposited their hard earned money
in the banks only to be told that the bank has no money to pay them.
Accounting information may or may not be
useful in turning round these banks to the part of accounting information and
growth. Resolution of this is part of
the problem this study is out to achieve.
12
AIMS AND OBJECTIVES OF
THIS STUDY
This study intends to
achieve the following aims and objectives:-
1. To ascertain the type of accounting
knowledge made
available.
2.
To
examine the extent to which a bank management utilizes
accounting knowledge in lending
decisions.
3. To
determine whether incidence of bad debt can e avoided if
bank management
utilizes accounting knowledge in their lending decisions.
4. To suggest ways which usage
of accounting information can be made more effective in bank lending system.
5.
To
make recommendation s on ways of struggling the position contribution of the
banking sectors to the national economy.
1.3
THE SIGNIFICANCE OF THE STUDY
The significance of the study on be classified
into practical and theoretical significance.
In practical terms this study is very useful to the various categories
of banks especially commercial banks, the government and non – governmental
organizations. It is very useful to the
commercial banks as they are the major lenders of money.
The government
at all levels in Nigeria
will equally benefit from the outcome of this study and it will guide them on
the proper usage of accounting knowledge in their lending practices. The government will find this study useful to
her economic policies.
Also foreign investors and non –
governmental organization who are held from investing in the country of
unfertile banking evolvement will find this work interesting.
To the private
individuals, the outcome of the study will sensitize them of their obligations
to their banks especially when proposing for any form of benefits from the
banks.
1.4
SCOPE AND LIMIATION OF THE STUDY
It is not easy carrying out a research
of this dimension. In this study we may
be handicapped in certain areas. The
major constraint we are likely to face in the course of the study is time
factor. The researchers are students who
will be combining the work with other rigorous academic activities in the
campus.
Another
limit factor is fund:- The researchers
are handicapped financially. They are
students who depend solemnly on meager financially assistance to survive in the
campus. The huge financial requirement
of the study of this type may not be forthcoming.
Furthermore due to sensitive and preceding nature of this
study all the necessary co-operation from the bank efficiency may not be as one
may have expected the problem may quen be compounded by the atmosphere of
secrecy and security when guiding the banking operations.
These
limitations not withstanding, the researchers will employ all necessary
methodologies and give up more of her time and fund to accomplish the work to
the required standard.
1.5
DEFINITION OF TERMS.
PHENOMENON: Things
that appears to, or is perceived by the sense.
DIMENSION: Measurement
of any sort (thickness, height etc.).
TYPOGRAPHY: Act
or style of planning
EMOIDED: Fix
firmly, embedded in rock or fact
ERIDITE: Having,
showing great learning scholarly.
ARBITER: Person
with complete control
TOME: Large
heavy book.
ENVISAGE: Picture
in mind (in a particular way)
SYNCHRONIZING:
(Cause to) happen at the same time, agree in time, speeds e.t.c.
INDISPENSABLE:
They cannot be dispensed with absolutely.
APPRAISING:
Fix a price for any what is worth.
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