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
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.
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.