ProjectClue.com We're Ready, Call Us

(+234) 07030248044

Project Topic:

IMPACT OF ACCOUNTING INFORMATION ON BANKS PORTFOLIO MANAGEMENT

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5  ::   Pages: 78 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   363 people found this useful

Project Department:

ACCOUNTING UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY

Every commercial bank targets the attainment of its desired objectives. They therefore aim towards efficiency and proper effectiveness in conducting its affairs. However, the level of this efficiency and effectiveness of any bank or the extent to which it is able to achieve its desired goals depends to a large extent on the quality of the available accounting information and on how the bank utilizes the available information.
For any commercial bank to be sure of success in the management of their portfolios in this day’s rapid changing environment, the management and staff must update themselves with every relevant and current accounting information that will be beneficial in determining the predetermined goals. Management must therefore plan the course of action of the bank by identifying the long, medium and short term goals based on the detailed analysis of feasibility, bearing in mind the socio-economic and political situation that might affect the plans to be achieved.
Optimal bank portfolio management is a continuous struggle of maintaining a balance between liquidity, profitability and risk. Banks need liquidity because such a large portion of their liabilities are payable on demand. The decision to choose one combination of portfolio over another, given the liquidity size and capital accounts of
the bank would have direct and significant effect on bank’s profitability, liquidity and risk.
Commercial banks are very important financial institution in the economy in the expansion of investments and risks. Unfortunately, a deviation from profits to losses in portfolios will bring about wrong investment decisions by the bank which will bring about a defeat in their future risk taking policies and profit performance. A thorough analysis of the risk presented by an investment will improve the portfolio management thereby yielding less risk and more profitable portfolios.
The bank’s portfolio management is a major success factor of bank management. Numerous discussions on the new capital adequacy proposals enlighten the necessity to consider the banks portfolio management from both the internal and regulatory point of view. The question now is: with a simplified bank portfolio, is it possible to examine the impact of the regulatory risk limitation rules on the optimal situations under unfavorable market condition and intensifying competition bearing in mind that they are exposed to decreasing return margin on the portfolio and at the same time, their shareholders demand for higher risk premium for the capital they invested.
Based on this, this research work is assessing the extent to which banks are enlightened on how to strike a balance between risks and portfolios and whether commercial banks use accounting information especially on decisions to buy or not to
buy a portfolio considering factors like the personality and integrity of the prospective investor and the Nigerian stock exchange trade guidelines.

1.2 STATEMENT OF THE PROBLEM
Commercial banks might not really understand the impact of adequate accounting information in the management of their portfolios until probably they undermine the use of it in their bank. Inadequate or lack of accounting information exposes or leaves portfolio management to certain problems such as:
- Malfunctioning and wrong decision making by managers in the management of risks arising from the portfolios.
- High occurrence of factors that may result to high incidence of losses instead of expected profits where proper accounting information on portfolio management is not on hand.
- Inability of the managers to strike a balance between risk and investment, the negative effects which is seen on the low profits derived from the portfolios.
- The implications of continued incidence of losses due to poor portfolio management on the productivity of the portfolios.

1.3 OBJECTIVES OF THE STUDY
The overall purpose of this research work is to evaluate and determine the impact of accounting information on the portfolio management of bank.
Specifically, this research work stands to achieve the following objectives:
1) To determine whether accounting information has enhanced the portfolio management of commercial banks.
2) To find out whether conflict in accounting information affects the choice of portfolios.
3) To determine whether accounting information has improved the basic roles of cost minimization, proper allocation of scarce resources and improvement of the portfolios.
4) To ascertain the extent to which adequate use of accounting information reduces the risks associated with the portfolios.

1.4 RESEARCH QUESTIONS
The following research questions will be used in this study to form the research hypothesis.
1. Has accounting information enhanced the portfolio management of commercial banks?
2. Can conflict in accounting information lead to improper management of banks portfolios?
3. Has accounting information improved the basic roles of cost minimization, proper allocation of scarce resources and improvement of the portfolios?
4. To what extent do factors that bring about losses other than profits occur in the bank’s portfolios?
5. To what extent does adequate use of accounting information reduce risks in bank’s portfolios?

1.5 STATEMENT OF HYPOTHESES
This research work is undertaken on the basis of the following hypothesis:
HYPOTHESIS ONE
Ho: Accounting information does not enhance the portfolio management of commercial banks.
Hi: Accounting information enhances the portfolio management of commercial banks.
HYPOTHESIS TWO
Ho2: Conflict in accounting information does not affect the choice of portfolios.
Hi2: Conflict in accounting information affects the choice of portfolios.
HYPOTHESIS THREE
Ho3: Accounting information has not improved effectively the basic roles of cost minimization, proper allocation of scarce resources and improvement of the portfolios.
Hi3: Accounting information has improved effectively the basic roles of cost minimization, proper allocation of scarce resources and improvement of the portfolios.

1.6 SIGNIFICANCE OF THE STUDY
This research work lays much emphasis on the impact of good accounting information on banks portfolio management and as such will help commercial banks as they analyze on their portfolio management and also help them in reducing the high incidence of losses instead of expected profits from the portfolios.
This work will also be of much help to the government in finding out measures to apply in order to curb or reduce the high incidence of losses and risks in the bank’s portfolios in other to increase the national income and output of the economy.
Finally, this work will be of immense help to students, researchers and scholars as it will open a new area of study for further research and also form a basis for view of related literature.

1.7 SCOPE OF THE STUDY
This research work will specifically focus attention on the impact of accounting information on banks portfolio management. Due to logical point that not all the commercial banks can be studied, this research work is therefore limited to First Bank of Nigeria Plc, Enugu. Any other reference is just for a better understanding of the topic but not within the scope.

1.8 LIMITATION OF THE STUDY
A major limitation of this study is that it did not go into the general impact of accounting information on portfolio management of both bank and non-bank financial institutions, rather it is limited to only banks portfolio management.
The conservation nature of banks and their apathy towards providing information especially with respect to their internal operating policies is another limitation.
Human errors and biasness are other limitations of this study as some of the data were collected through interviews therefore there is a possibility of omitting and exaggeration of vital information in order to give their bank a positive credit for fear of what seem like an invasion in the bank’s privacy.

Get the complete project »

Instant Share On Social Media:

OTHER SIMILAR ACCOUNTING PROJECTS AND MATERIALS

AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF ACCESS BANK)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Secondary data, Data Analysis,Abstract  ::   2542 engagements

CHAPTER TWO REVIEW OF RELATED LITERATURE Electronic banking in Nigeria has overtime been viewed by many especially economists as having a lot of implications on the economy of Nigeria and especially...Continue reading »

A CRITICAL ANALYSIS OF THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 75 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   2292 engagements

ABSTRACT The study was carried out to analyse how an organization performs making use of the financial statements with First Bank of Nigeria Plc serving as the case study. the study disclosed that th...Continue reading »

AN EVALUATION OF THE PERFORMANCE OF NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA ( A CASE STUDY OF NIGERIAN STOCK EXCHANGE)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 78 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1025 engagements

HISTORICAL BACKGROUND OF THE NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN. The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill...Continue reading »

APPLICATION OF BUDGETS AND BUDGETARY CONTROL MEASURES IN A NON-PROFIT ORGANIZATION: A CASE STUDY OF APOSTOLIC CHURCH, DELTA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1214 engagements

2.1 CONCEPTUAL FRAMEWORK A budget is can be defined by accountants as “a planned outcome to be generated and for the expenditure to ensure during that period and the capital to be employed to a...Continue reading »

ASSESSING BOOK-KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES IN CALABAR LOCAL GOVERNMENT AREA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 69 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1026 engagements

ABSTRACT The economy of Nigeria cannot function properly or thrive without the micro, small and medium scale enterprises (SMEs). These small scale enterprises cannot function properly if they are not ...Continue reading »

ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF UNION ASSURANCE COMPANY, UYO)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 86 ::   Attributes: Questionnaire, Data Analysis  ::   677 engagements

THE CONCEPT OF RISK Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Baw...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Taleeb from Kwara state polytechnic said "I like all topics on this website but anytime i wrote topic to my project supervisor he used to ask where is the case study and case study is not written there . thanks ................".
    Rating: Very Good
  • 2. Donald from ui said "i thank you guys for the good work...i never believe that there are still some Nigerians that are trustworthy until i stumbled upon projectclue. excellent job. great write up. weldone Glory keep up the good job. nice voice.,...i will always recommend projectclue to any Nigerian researchers...God bless.".
    Rating: Very Good
  • 3. Abdoulrasheed Tapheeda from Taraba State University,Jalingo said "The Project Clue owe me a Tribute Respect, because of the nature of their work and delivery system. I recommend this site for any undergraduate due to the quality and fast delivery system of their work. Thanks".
    Rating: Excellent
  • 4. Sam Seyil from Federal Uni Agric. Markudi said "I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good quality. I recommend ProjectClue for any project research work.".
    Rating: Excellent
  • 5. Eval, Effa A. from University of Calabar (Unical) said "It was a wonderful experience using projectClue, it really helped me in carrying out a Term paper research NGP.".
    Rating: Good
  • 6. Abimbola Bisola from Obafemi Awolowo University said "Thanks a million times for giving me a quality research project. not only have i defended i was commended by my supervisor. You guys are the best; Project clue".
    Rating: Very Good

Leave a comment: