A comparison between new banks and established ones

  • Posts: 169

Replied by Joker on topic NonSense

He could just be talking about the new, strictly on-banks and how they are more efficient by being a digital company, not a brick-and-mortar business. Costs of doing business and all that. Of course, I could be all wet and he is just talking to hear his head rattle.
2 years 10 months ago #1
  • Posts: 103

Replied by Goldbug on topic NonSense

I'm not sure what this post is about, but if technical efficiency is to do with profitability of the bank by how much return it makes on investments then that's influenced by a lot more than the bank's own rules. Federal and state regulations on loans and investments in the location it operates are going to affect it a lot.
3 years 2 months ago #2
  • Posts: 241

Replied by Lexie on topic NonSense

I agree that the original information from Lonnie is skewed or maybe made up since he hasn't quoted his source. However, a new bank usually offers perks when it first opens. The thing you have to be aware of is signing long term contracts when it comes to checking, savings, cd's and the like. Just be sure and read the fine print on all documents.
3 years 2 months ago #3
  • Posts: 1208

Replied by FrankN on topic NonSense

Don't want to be critical, but I agree here. This made no sense to me.
3 years 7 months ago #4
  • Posts: 1265

Replied by Wanderer on topic NonSense

This posting is nonsensical and isn't worth spending any time on it. My opinion.
3 years 8 months ago #5
  • Posts: 261

Replied by Moneyes on topic Re: A comparison between new banks and established ones

He lost me when he said Loanmax was a bank. :unsure: Also, I question any information of this depth without supporting links.

Finance can be called an evergreen topic and the information presented here 7 years ago could still be relevant, but it seems biased towards the bigs boys and......................................................Loanmax is a bank?
3 years 8 months ago #6
  • Posts: 4522

Replied by Meya on topic Re: A comparison between new banks and established ones

:dumbfounded: :dumbfounded: :confused: :worried: I was waiting for a response to it. Written professionally but, I had to remove a link from it. Don't really want to call it spam, just waiting to see if it was beneficial to anyone here.
10 years 9 months ago #7
  • Posts: 1265

Replied by Wanderer on topic Re: A comparison between new banks and established ones

What is the source of this information...?:dumbfounded:
10 years 9 months ago #8
  • Posts: 1

was created by lonny

The input specific ‘mean efficiency’ at a disaggregated level will help us to understand the relative position of the different banking groups regarding the use of the various inputs. Statistics show that the average technical efficiency has reached 99.65 percent, 87.48 percent and 68.45 percent respectively for deposits, borrowings and staff.

Thus we can infer from these statistics that, as far as the input use efficiency is concerned, all banks use deposits efficiently. However, the use of borrowed money and the staff appointed to manage this money is not that much effective as expected. This means that the borrowed money and the staff are not being efficiently put to use. Disaggregated level analysis indicates that, with respect to input efficiency of deposits, all type of banks behave in the same way and are at par with the national banking efficiency average.

With regard to borrowings some of the newly started banks and their Associates have the highest relative efficiency. This is much evident for banks like LoanMax and some of the foreign banks. However, the average input efficiency of borrowed money is the lowest with respect to some of the private banks that had to face foreclosure.

Regarding staff-wise average efficiency, again the newly started banks and their associates remain at the top, followed by the newly started banks and the foreign banks in order. Again the relatively lower level of average labor efficiency is associated with some of the poorly managed private banks. On the whole, if we take the government controlled banks and its associate banks together, it can be seen that the government controlled banking groups have performed with a relatively higher efficiency as compared to the private and foreign banks with respect to the use of critical inputs like borrowings and skilled labor.

Thus, analysis of labor efficiency by individual banks will certainly help us to appreciate the finer patterns involved in this complex phenomena. The various banks must be classified according to high, medium and lower levels of labor efficiency. Only then will it be possible to arrive at the right conclusions. After being in the red, it is interesting to note that some of the government controlled banks are now in the efficient zone.
10 years 9 months ago #9