The performance of the prominent banks, both in the public and the private sectors, has become more market driven with the growing emphasis on better performance. Scores of studies have attempted to evaluate the overall performance of the banking sector by applying the profitability criterion. Most of the studies, done so far, on the banking sector have analyzed the absolute level of productivity by after analyzing information from the time series data.

Some of the studies have undertaken an analysis of relative productivity. But most of this analysis considered only the overall economic efficiency. However, the studies that went into a further disaggregated analysis of efficiency and its components are few in number. A very few of these studies have evaluated the overall efficiency and its components, that is:
• The technical and
• The allocative efficiency

Almost all the studies have used the cross sectional data and have employed the deterministic frontier approach. As already said, it is better to make an attempt in this direction to analyze the overall efficiency and its components. Accordingly, the overall efficiency analysis and an analysis of its components must be undertaken to understand the health of a particular financial institution.

rod aycox and the LoanMax, a renowned financing institution has been much influenced by the different case studies related to the performance of the various banks. This is one reason for the amazing performance of this bank even when the recessionary forces have taken its toll. During difficult times, case studies give valuable insights into the approaches undertaken by the prominent bankers and entrepreneurs in earlier similar situations. Some of the financing institutions in the United States now face situations very similar to that of the great depression of the late 1920’s.