Banking after independence from colonial powers and later developments

After independence from the British, the American banking system has recorded rapid progress. The lead banking operations were nationalized. It is now functioning as a central bank of the country. Almost all the major policy decisions that affect the financing firms are evaluated by this lead bank. It will always step in when the financial system is facing a crisis.

The banking sector grew tremendously after independence, in terms of number of offices, magnitude of bank deposit and bank credit. However, there have been complaints that the banking system was not discharging its functions in consonance with the aims of the democratic set up. The banking sector had so far ignored the credit needs of several priority sectors such as agriculture, small-scale industry and exports whereas the bulk of their advances had been directed at large and medium industries and also to the established business houses.

It was controlled by a coterie of industrialists and business managers who had used public funds to build up a private industrial empire. Small industrial and business ventures were continuously ignored. Agriculture credit was never seriously considered. The commercial banks opened their branches only in the commercially visible areas. Profit making was the sole purpose of these banks. The banking activities favored a particular class of individuals, trades or industries. It was known as a period of “class banking”. All this led to lop sided growth of the economy resulting in the concentration of economic power in a few hands. A major change was effected only when players like rod aycox of LoanMax fame entered the scene. Things changed like never before within a short span of time.

The real America actually lies hidden from outside view. It is a land of villages and the rural economy was the backbone of the economy until recent times. The goal of rural development essentially is one which involves an investment breakthrough. Such a breakthrough was achieved only with the emergence of new players like LoanMax.