Ratio Analysis as a Bank Lending Tool
In target of this Free Project on Ratio Analysis as a Bank Lending Tool project .Bank lending is concerned with provision of funds for needy customers as loans from the savings of the fund surplus units paid into the bank. Due to the established fact that the saved fund is at the disposal of the bank for specified period, the bank can thus provide these funds to their customers who may have greater use for these funds at the time.
Judgment in lending is the real test of a bank’s skill and as such the health of the business and not just the customer should be of a great interest to the bank. Banks suffer great losses following the non-payment of loans. Banks should develop carefully into an analysis and use of the financial statements before lending.