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by The liberal
American financial system is one of the major beneficiaries of the
globalization forces. Taking a cue from
the fast development of the American economy, other nations have liberalized
their financial systems that were under the tight wraps of the state. In countries like India that saw the reign of the
license raj, major changes have taken place.
However, very recently and especially after the economic woes started
taking its toll, there is a better understanding between the various financial
institutions. It has become inevitable
due to the unexpected changes in the financial market.
The twenty
first century is going to be totally different.
With each passing year, the financing institutions will have to face
more competition. Newer financing
institutions like LoanMax started by the renowned banker
rod
aycox are now household names in
the areas where they have operations. By
improving their productivity and efficiency, this firm could gain the support
of the common people. Also, it is the
only option for surviving the competitive environment.
Even the
social fabric of the United
States has undergone a sea change. Small firms like LoanMax had to adjust to the
emerging situations from time to time.
Due to the economic slowdown customer spending has come down and very
few people are interested in investing in real estate. Thus in such an environment, to post profits
is rather difficult. Especially during
an economic slowdown, attempting to improve the overall efficiency requires
much effort.
Only
through continuous analysis will it be possible to understand the overall
performance. Very often performance is
judged using the profitability parameter.
However, few studies have considered the fund allocation efficiency and
loan retrieval aspects as well. Even
then, the overall efficiency of a lending institution like LoanMax can be
measured by using simple rational analysis and its comparison with known
benchmarks. Thus the overall efficiency
is a function of:
a) Technical efficiency, i.e., those
aspects producing higher output per unit of given input and
b) Allocation efficiency, i.e., by getting
the mix of outputs right, given their relative prices
A major beneficiary of the globalization forces
smatta- Grunt
- Number of posts: 1
Age: 28
Registration date: 2009-09-09
