The nature of growth requires the expansion of the monetary circulation in the economy. This expansion is given on one hand by absolute growth and on the other hand it depends on the acceleration of the circulation.
Electronic money, globalization and privatization defined the context of the new role of Banks. In the past Banks were “hygienic” aspects in economic growth.
Their importance grew and the possibility to expand economies now depends significantly on their role. The crisis that began in 2008 is just a demonstration of their importance.
Risk management was in the past “the issue” in banking business. Banks had a rearview mirror provided by technical analysis that was the natural tool to manage the business.
Now Banks need to include a front-view perspective to avoid unmanageable distortions in the economy that might happen as a consequence of disequilibrated monetary circulation.
It is time to go back to basics and recover fundamental analysis in banks in order to deal with the possibilities of businesses and environments.
Governmental interventions are and will be “the” alternative equilibrator.
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