Emphasizing on efficiency parameterization in banking

[hallmark]

When reviewing the scores of literature and other publications on the various developments in the banking sector, the productivity measurement of the banks has attracted the attention of both bankers like rod aycox and even the prominent academicians, especially, during the last fifteen years. A majority of these studies have used an accountant or have undertaken the role of a bank manager to analyze the various issues. However, this approach has some serious limitations.

Firstly, such an approach is too aggregative. Secondly, it aims at maximizing the profit of an individual organization. However, a social scientist’s view of such a problem is altogether different. Banking is an important institution in the development process and also in the transformation of an economy. The banking institution, especially in the American setup, cannot be judged by just a few profitability or turnover ratios in isolation.

Recently, the institution of banking in the United States has got tarnished due to the adverse economic situation and also due to the mismanagement of the banking operations by some of the major banks. But that is not going to herald a decline in banking in this country. Almost all the prominent American banks have firmly established their place in the global financial system.

Banking in the United States, historically and even at present is not merely an organization with a profit motive alone. It is a multi-objective organization working to achieve some economic and social objectives. The present study aimed at the parameterization of efficiency. The study elaborated upon the conceptual framework, discussed some measurement issues and techniques and finally summed up the next approach to be taken.

Consider the phenomenal growth of a bank like LoanMax. This bank has achieved much progress mainly due to the lead role played by the visionary Rod Aycox. From small beginnings, it could scale greater heights mainly due to the emphasis placed on transparency and efficiency. Perhaps few other banks can ever claim such a record.

[kallankurup]

nice.....note...........:lockd::lockd: