THE IMPACT OF MANAGEMENT INFORMATION ON BANK LENDING DECISION

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CHAPTER ONE

1.1  INTRODUCTION

BACKGROUND TO THE STUDY

The bank has a full range of banking services and products provided to delight their customers. They include: personal savings account, personal current account, standard share account, domiciliary account and so on Decision taking is a life wire of any organization as the future growth of the enterprise depends largely on the soundness and unsoundness of such decision. For the banking sector in particular, the importance of valid decision in enhancing its growth and profitability cannot be over stretched. The banking industry in Nigeria is in a state of chaos. The utilization of management information on banks lending decisions will make a lot of impact in enhancing banking growth and productivity.

The usefulness of the management information cannot be very useful in all operations in the banks. Management information contains such details as regard banks financial standing and long-term viability, some of the ways banks lend money are through banks overdraft and other advances it can categorize of its customers. Before banks lend money, they will be interested in the ability of their customers to pay interest on borrowed loan as well as their ability to refund the loan at the appropriate time. Management information is indispensable in granting such loan, overdraft and other advances also in monitoring the realized of the disbursed funds. Before the decisions are reached, management information should be sought for to provide the choices as well as the outcome of the possible decision.

The major aims of banks is maximizing profit, the management of the bank use data and basis, provided in management information in taking useful decision that is in line with the goals of the organization. Management information is very useful in planning co-ordinating and control. Moreover, with management information, every lending decision will be based on data that have first of all to be selected, collected, verified and subsequently utilized for growth, profitability and viability of the bank.

1.2  STATEMENT OF PROBLEM

The recent development in the banking industry in Nigeria have shown the most of the bank management and decision takers have grossly violate in their operation.

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