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Effect the Accounting information and Non-Accounting information in decision making

The banking service industry has business activities that can be grouped into main and
supporting businesses The main business of a bank is to raise public funds, in the form of
deposits, savings and time deposits to be channeled back to the companies that need them,
namely in the form of credit extension. Whereas the supporting business of a bank includes
activities that can facilitate payment traffic, such as clearing, collection, and transfer . In addition
to these types of activities, providing guarantees to other parties for certain companies in the
form of issuing Bank Guarantee Certificates and providers of Letter of Credit facilities can also
be grouped into bank supporting businesses. A bank provides the provision of L/C facilities by
cooperating with other banks abroad. The cooperation between the two banks aims to provide
guarantees to both parties that transact export-import trade, namely in the form of a Letter of
Credit . Letter of credit is a bill of exporters to an importer outside the country through a
domestic bank (the issuing bank). In line with the rapid progress of the economy and business
today, the bank's business activities are increasingly sophisticated and diverse. It can be seen
from the additional types of banking practice activities today such as credit cards, automatic
teller machines (ATM); currency swaps, interest swaps, investment in the Eurodollar market to
electricity and telephone account payment services . However, various main activities which
have long been the backbone of the agency's operations, until now still survive firmly

-Banks must be careful and accurate in calculating the possibility of various risks to deal with
banking business risks that are so complex. The calculation can be in the form of evaluating each
credit decision given to prospective debtors, both qualitatively and quantitatively. Qualitative
credit evaluation is a process of evaluating the quality of prospective debtors' management of
marketing strategies, short-term and long-term plans. In addition to the above, elements of
compliance with applicable laws and regulations such as all forms of business licenses owned by
prospective debtors and taxation, as well as references from other banks or previous banks also
evaluated in the bank's prudential business principles. Therefore, This study is intended to find
empirical evidence about the effect of accounting information on credit decision making

Lack in studies that examined the relationship between financial information and Non-financial
information in credit decision

Aiming to Investigate the relation between Financial and non-financial information on credit
decision , and the impact of accounting and Non-accounting information as a strategic decision
making tool


H1: There is a statistical relationship between financial information and credit decision

H2: There is association between Non-accounting information and credit decision

H3: there is relation between non-financial information on assessment stage on credit decision

Questions :

1-What the impact of financial information on credit decision ?

2-what the relation between non-financial information on credit decision ?

3- why investigate the relation between financial and non-financial information and credit
decision is important ?


The importance of this research is that a few researchers have talked about this subject, despite
the fact that it is very important to the community because the money that the credit department
gives to any investors is the money of the people deposits , and at any time it can bring anyone to
withdraw the money, while a wrong credit decision can lead to loss this money and also leads to
bankruptcy , and in this research we focus on the factors affecting the decision-making process
of acceptance or rejection based on accounting information is important in the credit department
and any other section and also non-accounting information became more important because it
shows many things are hidden behind the acceptable accounting information and finally, it
concerning to constant criteria for trying to preserve the rights and money of both parties (bank
and client)