The impact of accounting information on bank lending decision

Thesis Overview

<p> </p><div><p><strong>1.1 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;BACKGROUND OF THE STUDY</strong></p><p>All the information necessary in the business are being summarized in the Accounting Records to ascertain the efficing and effectiveness of all the business enterprises though the process of accounting.</p><p>Accounting may be defined as a set of Rules and Methods by which financial and economic data an collected processed and summarized into report for decision making.</p><p>In using data presented to them by customer for the purpose of leveling the bank is interested in financial Accounting Information which enable it reach an initial lean decision and also helps it to monitor progress after the advice has been made.</p><p>These information are those that deal with solvency, liquidity and profitability these means obtaining information that will described the client’s financial stand and long term liability. &nbsp;Banks need three basic types of Accounting Information namely:</p><p>The score keeping information involves liability and investigation of variance for corrective actions. &nbsp;This is done by campaign expert results with elections implement ex-ante and useful in evolution state of planning.</p><p>It also concerned the control principles function of management by exception.</p><p>Moreover it bring out problems look into for collective actions.</p><p>The problem solving information is useful in the implementation shape of planning since it focuses on analyzing and recommending the best course of action among may courses. &nbsp;It is closely associated with management decision making process and consist of non-routine and ad-loc and special decision.</p><p>The objective of the most banking activity is to ensure effective.</p><p>Lending and as such lending has become the most important of banking operation. &nbsp;However lending forms the major segment to banking operation.</p></div><h3></h3><br> <br><p></p>