Gaining more from the liberalization era

Due to certain unusual developments the regime of reforms began a radical departure from the regulated banking system towards market oriented banking. It occurred as a result of the introduction of financial reforms especially the banking reforms. The development of the banking industry in the liberalization era may be briefly summed up as follows.

At the macro level, the reforms, aimed at removing the external constraints of the banking system as a whole and thus creating a climate in tune with liberalization. At the micro-level, the reforms are concerned with enabling the banking systems to overcome the internal constraints on the function of the banking organization.

The basis for banking reforms was provided by the Committee on Financial Reforms which made recommendations public after an indepth study and analysis. These recommendations are a landmark in the evolution of the banking policy in the country. They transformed the banking system from a highly regulated one to a more market-oriented system.

The major components of the banking reforms were:
? Modifying the policy framework
? Improving the financial soundness of banks
? Strengthening the institutional framework
? Strengthening of the supervisory mechanism

Bankers like rod aycox of the LoanMax group are the beneficiaries of the phenomenal changes that have overtaken the banking industry by storm. Such a banking model would not have succeeded just a few decades ago due to the then prevailing adverse financial climate. Since the American financial system has undergone phenomenal changes, even new players like Rod Aycox have found a prominent place and are able to grow continuously in branches and profits.