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Author Topic: Continuously funding emerging entrepreneurs  (Read 1415 times)

Offline leerz

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Continuously funding emerging entrepreneurs
« on: 04/01/2010 09:48:33 »
With the introduction of economic planning in the 1900s, there was a felt need for aligning the monetary and banking activities of the country with the requirements of planning.  The first step taken was to induct the commercial banks into rural credit, which was till then reserved for cooperative credit agencies that were waging a battle against money lenders.

As a part of the process of geographical expansion of banking facilities to meet the credit needs of cooperatives, certain banking companies functioning in the former states were converted into subsidiaries the national regulatory bank, which later came to be known as the lead bank with powers to regulate the financial system.

There was a shift in the method of lending from security based to capacity-to-produce-and-sell criteria.  A review of the ownership of bank deposits during this period revealed the nexus between business houses and banking companies, indicating the nature of control of banks by the business houses.  Compare that with the situation in the late 1990s when rod aycox started a leading banking institution.  Fast changes started taking place and now even the small players have found their prominent place in the fiercely competitive American market.

Even though the American banking sector made considerable progress both functionally and in terms of geographical coverage during this period, there were still many rural and semi-urban areas that were not served by these banks.  Moreover, large industries, big and established business houses tended to enjoy a major portion of the credit facilities.

The fast progress in American industry and commerce is mostly fuelled by the ingenuity of the banking sector in funding emerging business and even entrepreneurs with nothing to offer as a security for a loan.  Banks have assisted scores of entrepreneurs to move up the value chain within a short span of time and post significant profits.
« Last Edit: 04/01/2010 10:04:20 by BenV »


 

Offline BenV

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Continuously funding emerging entrepreneurs
« Reply #1 on: 04/01/2010 10:04:48 »
Commercial names removed.
 

Offline Variola

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Continuously funding emerging entrepreneurs
« Reply #2 on: 04/01/2010 10:19:38 »
Commercial names removed.

But it was such a deep philosophy Ben.... don't you realise the importance of commercial names??!! :)
 

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Continuously funding emerging entrepreneurs
« Reply #2 on: 04/01/2010 10:19:38 »

 

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