THE IMPACT OF ACCOUNTING INFORMATION ON BANK LENDING 
(A STUDY OF FIRST BANK OF NIGERIA PLC, ENUGU)
ABSTRACT
This study focused on the impact of accounting information on bank lending. The study adopted First Bank of Nigeria PLC, Enugu. The study adopted survey method of research. A sample of 70 respondent was used. The analytical tools were frequency tables and percentages. The study found out that Accounting Information system  is very important to commercial banks because the lending decision of that particular bank,  where Accounting Information system  are not available, there is the likelihood that poor lending decision will be made. Lending banks should put in more effort in the monitoring of the project for which the loan was taken. This is to make sure that the loan is being used for the purpose it was taken.  This helps to ensure that the customer can repay the loan as an when due. And that effective and efficient lending decision could be made should banks introduce pre-monitoring agents who are assigned to pre-monitor the true state (physical and invisible) of the business/firm to curb misrepresentation and default by the customer.
TABLE OF CONTENT
CHAPTER ONE:
1.0    INTRODUCTION
1.1    Background Of Study                            1
1.2    Statement Of Problem                             4
1.3    Objective Of Research                         6
1.4    Scope Of Study                                8
1.5    Research Questions                              7
1.6    Significance Of Study                            8
1.7    Limitations Of The Study                        9
1.8    Definition Of Terms                            10
References
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework
2.1.1   Accounting Information System  
2.1.2   The Accounting Process
2.1.3      Accounting Information system and the Decision Process
2.1.4      The Functions of Accounting in Decision Making
2.1.5      The Relevance of Accounting Information system on a    Business Organization
2.1.6  Class of Accounting Information system
2.1.7 Characteristics of Accounting Information system
2.1.8    Uses of Accounting Information system
2.1.9    Factors that Influence the Effectiveness and Efficiency of the Accounting Information Systems in Banks
2.1.10 Bank credit and role of accounting information in credit granting decisions Granting credit represents one of the most significant bank activities.
2.1.11 The Chart Of Accounts
2.1.12 Chart of Accounts Best Practices
2.1.13  Impact of accounting information in making credit decision
2.2    Theoretical Framework
2.2.1    Game Theory
2.3    Empirical Literature
2.4 Summary of Literature Reviewed
REFERENCES
CHAPTER THREE
METHODOLOGY
3.1    Research Design
3.2    Area Of Study
3.3    Population of the Study
3.4    Sample and Sampling Technique
3.5   Instruments for Data Collection
3.6    Validation of Instrumentations
3.7     Reliability Of Instrument
3.8    Method for Data Collection
3.9    Method Of Data Analysis
CHAPTER FOUR
4.0     PRESENTATION AND ANALYSIS OF DATA
4.1    Data Presentation and Analysis                    45
4.2    Summary of Findings                            46
References
CHAPTER FIVE
5.0     SUMMARY OF FINDINGS RECOMMENDATION AND CONCLUSION
5.1    Summary of Findings                            56
5.2    Conclusion                                 58
5.3    Recommendation                             59
5.4    Implications of Research Findings                     60
5.5    Suggestions for Further Studies                     61
Bibliography
Appendices
CHAPTER ONE
INTRODUCTION
1.1    Background of the Study
According to the challenges that faced firms, and the negative findings of global crisis necessitate from all employees at different levels to award the important role of information that played in the activity of the firm. From here arising the importance of information. Information is the main source of decision-making, so this information must be characterized by a set of characteristics, in order to achieve the goals required for decision maker. Accounting information is one of the oldest information systems known in companies, as accounting information described with a great importance in identifying the financial and economic reality of the firms, and how company's relationships with its environment (Kassem, 2014). In general Accounting information system plays an important role in the management of firms, and one of the most important reasons for the existence of accounting and its continuous evolution is that it provides the appropriate information for both managers' and external parties concerned with such information. The study try to assessment the role of accounting information systems in supporting decisions in Jordanian banks through providing high quality of accounting information. The study problem is to identify and measure the role of accounting information systems in improving banks operation and activities which reflected positively on banks success.
    Accounting according to Nwoha (2009), the objective of accounting is to provide information regarding a firm’s transaction and resources, which should be relevant for making economic decision by persons or organization outside the entity. Whether you are paying your phone bills, balancing check books, preparing your income tax return on managing an international corporation, you are working with accounting concepts and Accounting Information system.
Accounting information system is a combination of people, equipment, policies, and procedures that work together to collect data and transform it into useful information. It is a formal mechanism for gathering, organizing and communicating accounting information about an organization’s activities. It is a system that provides people with either data or information relating to an organization's operation to support the activities of employees, owners, customers, and other key people in the organization's environment by effectively supplying information to authorized people in a timely manner. It is a system, an assemblage of various facilities and personnel, providing information to support managerial decision-making process (Khan, 2017). Its main function is to acquire, process, and communicate data that is essential to the operation of the organization. Nevertheless, it is an entity, composed of various inter dependent subsystems, working together to provide timely, reliable, and accurate information for decision making. It is a network established in an organization to provide managers with information that will assist them in decision making. It is a routine and an automatic system used for gathering and communicating data for the ends of assisting and coordinating collective decision in view of the overall objectives of a firm. The successful accounting information system would lead to the success of the organization in achieving its objectives but the unsuccessful information system could lead to the failure of the organization in achieving its goals meaning thereby an inability to grow and survive.
    . Financial accounting as a system of information has an effect on the management of the business and the effect is, do all businessmen know this? This is the question a researcher would seek to answer. The impact and importance of Accounting Information system   on the management of any business cannot be ignored or over looked. Though, the extent of such impact may not be the same for everyday business. Numerous School of Thought believes that no business escape such impact. This study which focus on the impact of Accounting Information system  on bank lending .
1.2    Statement of the Problem
Bank lending is the core of the entire operations of the banking industry. However, “the numerous and varied risks in lending system form many factors that can lead to the non payment of obligations when they are due”, Edward Lee (1976: 9). In fact the prompt repayment of loan and interest thereon determine the profitability of a bank. Many problems are encountered in commercial banks lending, some of these which this study is concerned with are: 1. Because of the high rate at which loans go bad. 2. Due to ineffective regulations guiding against loan defaulters in Nigeria. In the recent years, lending officers complain bitterly about the rate at which loans go bad. Some bank chief executives do give out loans to their clients and relatives on the ground of trust, which if it goes bad boomerangs on the bank and its operations, e.g. Oceanic bank, Intercontinental bank, Union bank and others. Existing literature in banking recognize the ‘importance and relevance of accounting information in bank lending decision making. The relationship between accounting information and bank lending system form the fact that financial statements are among the most important sources of credit information available to bank lending officers.
Accounting Information system generally constitutes the sole system through which both managers and external users get a clear picture of the organization as a total entity. Some managers fail to appreciate the accountant analysis in respect of financial accounting

1.3    Objective of the Study
The major objective of this work is to examine the impact of accounting information on bank lending: A study of First Bank of Nigeria plc, Enugu. The specific objectives were to:
1.    To examine the impact accounting information have on the extent of lending in banking industries in Nigeria
2.    To determine the factors that may constrain or promote the effective use of Accounting Information system in First Bank of Nigeria plc, Enugu
3.    To determine how Accounting Information system aid management of bank lending.

1.4    Research Questions
The following research question were drafted from the objective above:
1.    What are the impact of accounting information have on the extent of lending in banking industries in Nigeria?
2.    What are the factors that may constrain or promote the effective use of Accounting Information system in First Bank of Nigeria plc, Enugu?
3.    How can accounting information system aid management of bank lending?

1.5    Significance of the Study
This is also known as importance of the study, this study lies on the relevance to the following target groups.
The study will highly important to the accounting manager, as it aid management of organizations in evaluating their performance and as an assessment mechanism with respect to determine whether they actually take not of Accounting Information system  in their accounting preparations; help the management of the organization under study in setting standard for internal evaluation and control of actual performance.
Provision of basics to other researchers: to provide basis for other researchers or research scholars who may wish to carry out further research on the subject matter or other related topics.
Provision of insight: to provide an insight on how business organizations can rely on Accounting Information system for manufacturing company.
1.6    Scope of the Study
The extent of coverage of this research was limited the impact of Accounting Information system on bank lending. As it focused on First Bank of Nigeria plc, Enugu
1.9     Limitations of the Study
The main limitation of this work is the time frame and other limitations are stated below:
•    Time Constraint: it should be noted the period given is not adequate for a study of this magnitude and also a high demand nature of other academic engagements would affect the quality of this research. For this reason the study has to be limited to some specific areas.
•    Availability of Relevant Materials: the problem of getting the relevant textbooks, journals and other materials might pose as a threat to the quality of this research.  
•    Finance: the non-availability of finance for countless trips to collect data and meet certain obligation as at when due may contribute to the quality of this research work.
•    The Problem of Collecting Information: organizations and individuals usually characterized by the fear of diverging sensitive information to outsiders. Hence, the quality of the project may be affected by unavailability of some vital data from the respondents to some extent but total co-operation is being anticipated from our respondents.
1.8    Definition of Terms
•    Accounting: According to Oxford Advanced Learner’s Dictionary, the process or work of keeping financial accounts. Accounting is the process of recording, classifying, selection, measuring, interpreting and communicating financial data of an organization to enable users to make assessment and decisions.
•    Accountant: An accountant is someone who has prerequisite knowledge of how to keep the records of a company.
•    Financial statement: this is also known as financial report. It’s a formal record of the financial activities of a business, person or other entity.
•    Statement of cash flows: it is the report on a company’s cash flow activities, particularly its operating, investing and financing activities.
•    Value Added Statement: This is a statement showing the net added value of a business firm during a certain period on its total transaction.
•    Balance Sheet: This is a statement that shows the financial position of the business at a particular period in a year.
•    Accounting Information system  : these are the data that are found in the financial statement of an organization.