Financial Statement Analysis and Bank Lending in Nigeria

Abstract

The purpose of this paper is to examine impact of financial statement analysis on bank lending in Nigeria. It highlights the importance of financial ratios as they affect lending decision taking into consideration principles of good lending by bankers. The paper relied essentially on secondary data and employed descriptive analytical approach. The study found out that credit analysis plays a crucial role in lending decision by bankers. In order to solve the problems of bad lending, there is need for bank to ensure virile Credit Department to reduce incidence of non-performing facilities and to enhance banks' profitability.