Getting into the macro magnitudes of the financial structure

The
macro magnitudes of the banking industry are indicative of the fact that, it is
a very big and dynamic sector of the economy.
The capital base of the industry that was just a few million dollars
just a century ago has crossed several trillions within the past few
decades. The capital that has grown at
the rate of more than 10 percent per annum in the past is expected to pickup
and move above the growth rate of 10 percent when the economy shows signs of
recovery.





The
deposits from the investors are the major financial resource base of this
industry. The behavior pattern of
advances and investments in terms of growth rates is exactly in consonance with
deposits. The asset base that stood at a
few trillion dollars has almost doubled in the last 8 years and is likely to
follow the same trend and reach the level of a quadrillion dollars.





The
growth rate of assets is likely to improve marginally even during the present
times of recession. The relation of
deposits to Gross Domestic Product (GDP), even though it is not a very valid
comparison, can give us an idea about the magnitude of the banking industry in
the total economy. So, the banking
industry, the lifeline of the American economy, is a very dynamic and a growing
sector of the economy.





The
vitality of the banking industry in the United States is that there is
always room for innovation and entrepreneurship. This is rightly evident with the efforts
undertaken by rod
aycox , the renowned banker. The
LoanMax, the small firm started by Rod Aycox, actually had a very small working
capital. From this small beginning, it
witnessed major developments and is now continuously foraying into newer
destinations.





While
the major players are continuously facing problems, small players like LoanMax
are on continuous expansion of their various operations. The entry into newer sectors is another
indicator of the state of affairs in that company. When some the major players like Lehman
Brothers are facing intractable problems, firms like LoanMax are an exception
to the rule.