The modern USA banking system was established in 1980 under the influence of the Federal Reserve System, and adopted Depository Institutions Deregulation and Monetary Control Act. Up to this point the United States remained the only country among the industrialized nations, where a centralized organization does not exist.
The banking structure consisted of a myriad of small independent banks, the scope of which was limited to a very small area; the number of banks in 1860 reached 3000, in 1913 there were over 20,000, about 7,000 of them were national emission banks, and the rest have acted according to the laws of its state, and had no right to issue banknotes. This free banking was substantially different from its European interpretation.
US banks have been virtually deprived of any opportunity to build branches of the system. The banking facilities established in one state did not have the ability to spread their operations beyond or through offices’ opening in another state or in any other way. After the adoption of the National Banking Act the right to open branches were saved only for those banks that were part of the national banking system, already having their offices.
Nationwide banking law prescribes quite specific scheme to issue banknotes. However, over time the benefits of this scheme became more questionable. Government bonds, which places great demand as a basis to issue banknotes, are usually sold at a premium. This fact, combined with the rule that the bank could make an issue only to the extent of 90% of purchased bonds cost, largely reduced the profitability of investments for the emission goals, and in cases where the bank has the ability to issue loans, without the issue.
Let’s grapple now with the notion of “Speedy Loan Service”.
Only 40 years have passed since the first micro loans appearance. They were issued in Bangladesh – a country that still remains one of the poorest in the world. Speedy Loan has been developing rapidly in the 1990s and today is represented in almost every country worldwide. Read about popular service online.
Muhammad Yunus – “Ancestor” of Speedy Loan
A pioneer of microcredit and microfinance – Muhammad Yunus was born in 1940 in the British Raj (today Bangladesh). Muhammad studied for the first time at a local school in Chittagong, and later entered the prestigious school in the same place, the result showed 16 out of 39 thousand students. He traveled, he graduated from the economic faculty of University of Dhaka, lectured at Chittagong University, the University of Tennessee, opened a profitable packaging company.
In 1976, Yunus returned to his native country – Bangladesh. He visited one of the villages and the poor could not help but notice that the local citizens can not escape from poverty due to local moneylenders.
The last issued retail loans under such a high percentage, and on such a short time, that their return is simply impossible. Farmers were unable to sell their goods on the market and were forced to give it away to moneylenders for nothing. Yunus paid the debts of the peasants, and he began to give them credit – a tiny percentage of small amounts without collateral and guarantors.
The Rapid Rise in Popularity around the World
This video reveals the main Muhammad Yunus concept:
Grameen Bank, founded by Muhammad Yunus started its activity, it has issued more than 4 million loans worth about $ 5 billion in 1983. Return of loans provided through mutual responsibility: lenders organized informal groups, which were charged for each other and support each other. Over the years, the Grameen Bank loans amounted to a return to the 90%.
The bank success inspired many financiers in developing and even developed countries, including the United States. Many of the projects are focused on women, since it is women who often suffer from poverty and bear the main costs for the family, especially if the family is not complete.
After Grameen Bank emerged as microfinance agency of Aga Khan, which not only engages with speedy loan, but also provides residential loans and provides other financial services. Aga Khan Agency also provides support for a variety of micro-entrepreneurs whose business is related to the restoration of cultural property.
Today speedy loan is common in both developing and developed countries. Our online facility is not an exception. Find all the details on our site.