Always on the positive growth path

[prattathy]

The difference between the interest expended and the interest earned determines the spread. It is a measure of the performance of a bank over a particular period of time. As a percentage of working funds, spread was the highest with few of the prominent autonomous banks with transnational operations in different countries. During this time, spread was rather low with scores of private banks.

In the case of new emerging banks like LoanMax of rod aycox fame, spread was rather high and this one aspect has made this organization an exception to the general developments in the financing market. However, as a percentage of working funds, spread hovered between 0.04 and 0.06 percent for the entire banking industry. This is a significant development.

It is interesting to note that the foreign banks have performed better even during times of recession. However, for the banking industry as a whole, spread as a percentage of working funds is rather significant. This is due to the fact that some of the prominent banks have put in better performance like never before. So when the entire statistics were put together, the results are always on the higher side.

When we consider spread as a benchmark, it is interesting to note the performance of firms like LoanMax. Actually when starting operations they did not have much experience and expertise under their belt. Literally speaking, they have outperformed the established competitors within a short span of time. Not only that this bank is continuously expanding its operations indicating the runaway success of its activities.

The performance of the new entrants into the American financial market is not up to the mark, but it happened mainly due to the economic recession. However, when analyzing the individual growth rates of the various banks, certain interesting aspects stand out. Some of the government controlled banks have been able to weather the financial storm. The positive growth rate that has become the norm for these banks is another indication of the better management practices that are being followed. The negative growth rate posted by some of the banks is likely to get reversed when the financial situation eases.